3. Analysis of the Macroeconomic Situation in 2014 and Prospects in 2015

In 2014, China’s macro-economy had, in general, performed stably. In the first three quarters of this year, the gross domestic product had a year-to-year increase of 7.4%, the economy grew steadily, and deceleration and acceleration of the demand appeared alternately. Employment and prices were stable, and people’s income increased steadily with an increasing trend. Transformation to an economy dominated by the service industry sped up, the emerging industry developed rapidly, and the market was invigorated. In 2015, due to the slow recovery of the world economy and increasing international market competition, external demand is not able to give much power to China’s exports. Because of the numerous constraints on the growth of the demand, overcapacity in the traditional industry, and production and management difficulties in enterprises, the internal impetus of economic growth in China will probably be insufficient. However, because of the continuous contribution from the service industry, new impetus from the intensification of economic reforms, huge economic potential from transformation and upgrading, in 2015, China’s economy should continue to maintain a steady and rapid growth.