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China's gross domestic product (GDP) is estimated to exceed 20 trillion yuan (about US$2.56 trillion) this year, up 10.5 percent over 2005, said Ma Kai, minister of the National Development and Reform Commission (NDRC), on Saturday.

 

Addressing the national development and reform working conference, Ma said that the country's economy has been developing fast this year with good efficiency and low inflation. Stable economic operation has benefited the people and will power future development.

 

He said that the Chinese people have benefited well from the steady and fast economic development. The NDRC projects that newly increased job opportunities could pass 10.5 million for the whole year, exceeding the 9 million planned figure at the beginning of the year.

 

The per capita net income for farmers and urban residents is expected to grow by 6 percent and 11 percent, respectively. The consumer price index will rise by 1.3 percent.

 

In the first 11 months, the investment in fixed asset went up 26.6 percent year-on-year, with the growth rate down 4.7 percentage points from the first half of the year. Newly increased loans in September, October and November have also decreased by 125.2 billion yuan, 9.5 billion yuan and 31.5 billion yuan, respectively.

 

However, he warned that the basis for economic development is not solid enough, the GDP growth rate is still too fast, and the cost is too much. "It's necessary to keep clear-headed," Ma said.

 

Statistics from the National Bureau of Statistics showed that in 2005 China's GDP hit 18 trillion yuan.

 

The NDRC will continue to change the country's pattern of growth from pursuing scale and output to stressing quality and efficiency next year, by further reducing energy consumption and pollution, said Ma.

 

China has planned to cut its energy consumption for unit GDP from 1.22 tons of coal last year to 0.98 by 2010.

 

Meanwhile, Ma said the government will go on reining in fixed-asset investment and boosting consumption, which was also pledged at the 2006 Central Economic Work Conference.

 

The conference delegates proposed to boost the income levels and consumption of rural people and the urban poor, calling for greater attention to creating employment opportunities.

 

The allocation of public resources must bring people more direct benefits, and problems involving people's immediate interests must be carefully solved, said Ma.

 

"We should promote social justice and stability by letting the people share the achievements of reforms," said Ma.

 

(Xinhua News Agency December 10, 2006)