Commissioner Li Deshui of the National Bureau of Statistics (NBS) announced that China's gross domestic product (GDP) had reached 18.23 trillion yuan (2.3 trillion US dollars) last year, or 1,700 dollars per capita.

China overtook Italy as the world's 6th biggest economy after a national economic survey found under-reported service sector output for 2004. The United States, Japan and other developed economies have yet to release their 2005 growth figures.

China's primary, secondary and tertiary sectors posted a respective 2.27 trillion, 8.62 trillion and 7.34 trillion yuan in added value, with the secondary sector, including industry, manufacturing and mining, growing at the fastest pace -- 11.4 per cent -- last year.

Preliminary government figures show that consumer spending, investment and exports contributed to 33.3, 48.8 and 17.9 per cent of the GDP growth.

For a long time, the Chinese economy has been driven by hefty investment, but Li said consumer spending was playing a greater role. "As for the future growth model, we will definitely try to spur consumption and raise its contribution to economic growth.

"

Other evidence for fair growth is that government investment in the less dynamic central and western areas rose 32.7 and 30.6 per cent respectively, much faster than the 24 per cent increase in east China.

On roughly 900 million farmers that critics say have been left behind by the country's quarter-century-old reform and opening-up, the government abolished agro-taxes for them and vowed to speed up the construction of rural facilities in the so-called New Socialist Countryside campaign.

Farmers' per capita income rose 6.2 per cent in real terms to 3,255 yuan in 2005, still lower than the 9.6 per cent increase for urban residents. Li Deshui acknowledged it was difficult to raise farmers' earnings.

"2005 was a very successful year for China's economy," chief economist Tang Min with the Beijing office of Asian Development Bank told Xinhua.

He said China's growth was laudable. It was achieved amid numerous financial problems and at a time when investment in allegedly overheated sectors, such as iron and steel, was being reduced.

But Tang said GDP is not the sole criterion of a harmonious society.