Abstract:China has a quite good economic performance in 2006 with about 10.5% GDP growth, and about 1.4% CPI. Look ahead 2007, although there exist some difficulties such as world economy is going slowly, the prices of resource products are at high positions in both domestic and international markets, and the crude economic growth pattern does not change, the great internal driven force of China’s economy is still at its high level. Business cycle analysis indicates that China’s economy will keep it high growth trend, and the speed will slow down at the end of 2007. Based on econometric models, we predict that the annual GDP growth rate is about 9.8%, the annual growth rate of Industrial Value-Added is about 15.8%, the annual growth rate of investment is about 23.5% and the annual growth rate of consumption is about 14.1%.