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This report is a partial result of Chinäs Quarterly Macroeconomic Model (CQMM), a project developed and maintained by the Center for Macroeconomic Research (CMR) at Xiamen University. The CMR is one of the Key Research Institutes of Humanities and Social Sciences sponsored by the Ministry of Education of China, focusing on Chinäs economic growth and macroeconomic policy. The CMR started to develop CQMM for purpose of short-term forecasting, policy analysis, and simulation in 2005.Based on CQMM, the CMR and its partners hold press conferences to release forecasts for Chinä major macroeconomic variables. Since July 2006, thirty-three quarterly reports on Chinäs macroeconomic outlook have been presented.

This report is a partial result of the China's Quarterly Macroeconomic Model (CQMM), a project developed and maintained by the Center for Macroeconomic Research (CMR) at Xiamen University.

This report is a partial result of the China's Quarterly Macroeconomic Model (CQMM), a project developed and maintained by the Center for Macroeconomic Research (CMR) at Xiamen University.

As the sluggish external market demand and excess domestic investment in past years have caused excess production capacity, resulting in both industrial growth rate and GDP growth rate falling to lowest point for the last three years in China.