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This book is a quarterly forecast and analysis report on the Chinese economy. It is published twice a year and presents ongoing result from the China Quarterly Macroeconomic Model (CQMM), a research project at the Center for Macroeconomic Research (CMR) at Xiamen University. Based on the CQMM model, the research team forecast major macroeconomic indicators for the next 8 quarters, including the rate of GDP growth, the CPI, fixed-asset investment, resident consumption and foreign trade. At the same time it focuses on simulation of current macroeconomic policies in China. In addition to helping readers understand China s economic trend and policy guide, this book has three main goals: to help readers understand China s economic performance; to forecast the main macroeconomic indicators for the next 8 quarters; and to simulate the effectiveness of macroeconomic policies.