Abstract:In a general sense,China’s economy has been in a stable and good situation in 2011.We predict the yearly GDP growth rate of 2011 is about9.2%.Compared with 2011,China’s economy will confront challenging international and domestic conditions in 2012.For the international aspect,the aftershock of international financial crisis is not over,European debt crisis might go deeper,the Middle East is quite unstable,and the global economic growth rate will go down.For domestic aspect,re-structuring economy remains a heavy task,saving-energy and reducing warm gas emission remain a big pressure,and the tight control on real assets market can not be lessened.We predict that: the GDP growth rates will go down in the first half of 2012,but turn better in the second half of the year,the yearly GDP growth might reach around 8.5%;the inflationary pressure will alleviate obviously,CPI will go down gradually,and the yearly CPI might be about 3.8%.For the "three big demands",the growth rate of foreign trade will keep on going down to a level at about 14.8%,and the surplus of foreign trade will further decrease;the consumption will have a relatively stable and fast growth rate,the real growth of the consumption is at the similar level of 2011;the investment will keep a stable pace,just a bit lower than that of 2011.The contribution of consumption to the economic growth will go higher among the "three big demands".