Abstract: The author made analysis and research on China’s economic situation in 1997 and forecast for the main macro-economic indices of 1998 based on Macro-economic model of China. The author considered that the achievements of economic development in 1997 were evident, but problems were also noticeable, and that the whole economy in 1998 would keep up a development momentum of stable rapid growth on the basis of actively quickening reform and strengthening macro regulation.