ABSTRACT
The support for Zhejiang’s economic growth comes mainly from the labor intensive industries which are suited to the initial stages of industrial development. Affected by conditions of deflation, economic growth in Zhejiang in 1998 saw contraction. In the last few months of 1998, the economic growth of Zhejiang province will shake off the declining trend, as the policies by various levels of governments to expand domestic demand gradually begin to take effect. The fundamental conditions for economic growth have seen various development stages, and this has meant that the role of the government in leading and jump-starting the current economy in economic growth has been reduced. In particular, as a typical processing trade zone, the base of demand for economic growth in Zhejiang needs to be the entire country and even international markets. The proportion of industries with new and high technologies, which have strategic significance to sustainable economic development, is even lower.
