During the"Eleventh Five-Year" period (2006-2010), the GDP of Liangshan Prefecture became the fastest in Sichuan Province, thanks to Liangshan's hydropower resources and mineral resources development. But in the "Twelve Five" period (2011—2015), Liangshan's economic growth declines year after year, which has gone beyond the normal range of the economy operation. Liangshan economic downturn is affected by the macroeconomic background of our country, from both demand and supply side. So a comprehensive policy is necessary. In the demand side, investment in real estate and infrastructure construction should be enhanced, as well as poverty alleviation to increase the spending power of the poor , and as for the supply side, close attention need to be paid to reform, while the industrial structure adjustment should be put on an important position. Through the development of services and urbanization development, Liangshan's economic develoment can be steady and healthy.