Global EditionASIA 中文雙語(yǔ)Fran?ais
    China
    Home / China / National affairs

    Household spending key to strong growth

    By WANG KEJU | China Daily | Updated: 2025-02-19 09:01
    Share
    Share - WeChat

    As China navigates a decline in the property market and rising global economic uncertainties, consumption is poised to assume an even more crucial role in driving the country's economic growth this year, analysts said.

    Policymakers should direct efforts toward introducing consumption-boosting fiscal and monetary policies to better catalyze consumer spending, they said, stressing that boosting residents' income is the essential recipe for stimulating robust and long-term growth.

    "China's consumption market saw a stable start to the year," said He Yongqian, a spokeswoman for the Ministry of Commerce, at a news conference earlier this month.

    Key retail and catering enterprises monitored by the ministry reported a 4.1 percent year-on-year increase in sales during the eight-day Spring Festival holiday that ended on Feb 4, while online retail sales grew by 5.8 percent compared to the same period last year, He said.

    "China's consumption market has demonstrated remarkable resilience, significant potential and vibrant dynamism, with the fundamental upward trend intact," He said.

    As the government rolls out new policies and initiatives to further boost consumer spending, the overall consumption market is poised to continue its steady expansion in the first quarter, He added.

    In particular, China's current consumption levels are relatively lower than the global average, presenting a significant opportunity for further growth, analysts said.

    According to analyses conducted using World Bank data, the average consumption rate among 10 major economies, accounting for 63 percent of global GDP collectively, stood at 73.22 percent, when their per capita GDP fell within the range of $10,000 to $15,000, said Sheng Songcheng, professor at China Europe International Business School.

    China's per capita GDP reached $13,000 in 2023, and its current consumption rate stands at only 55.6 percent, indicating the vast potential for China to further boost its domestic consumption and capitalize on this untapped source of economic growth, Sheng added.

    In recent years, the pace of income growth for Chinese residents has slowed, while the leverage ratio of the household sector has continued to rise, both of which have dampened personal and household consumption willingness and capacity, Sheng said.

    Luo Zhiheng, chief economist at Yuekai Securities, said rebalancing the distribution of national income in favor of households, especially those in the middle and lower-income brackets, is a critical step in unlocking the full potential of consumption as a driver of China's economic development.

    Key measures include perfecting the tax system, increasing transfer payments and accelerating the market-oriented circulation of rural land, all aimed at raising the share of national income for residents, particularly middle and low-income groups, Luo said.

    Governments at all levels should enhance fiscal and monetary support, which will be crucial in providing the necessary impetus for Chinese consumers to confidently engage in spending activities, thereby fueling the engine of economic expansion, Luo said.

    China should scale up fiscal funding in pushing forward the consumer goods trade-in initiative, and hand out consumption vouchers targeted at middle and low-income households, Luo said, adding that banks should actively develop the consumer finance sector to better serve both high-end and big-ticket consumption needs.

    Liu Chenjie, chief economist at fund manager Upright Asset, said reducing the mortgage interest rate should be a priority for policymakers as they seek to stimulate consumption-driven economic growth in China.

    The mortgage burden, which can account for 25 to 30 percent of a household's total expenditure, limits the resources available for other consumption activities, Liu said.

    The total outstanding mortgage loans in China have reached around 40 trillion yuan ($5.49 trillion), and with an average interest rate of around 3.3 percent, the annual interest payment alone amounts to 1.32 trillion yuan, Liu said.

    "If the mortgage interest rate were to be further reduced by just 1 percentage point, it would save households around 400 billion yuan in annual expenditure, effectively unlocking their consumption potential," Liu said.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
     
    最近中文字幕在线中文高清版| 亚洲午夜无码片在线观看影院猛| 无码人妻精品中文字幕免费东京热| 国产aⅴ激情无码久久| 亚洲国产综合精品中文第一| 亚洲av永久无码精品秋霞电影影院 | 久久精品aⅴ无码中文字字幕不卡| 久久午夜无码鲁丝片| 国产成人精品无码一区二区三区| 无码中文字幕av免费放dvd| 国产AV无码专区亚洲精品| 中文字幕人妻无码一区二区三区| 亚洲激情中文字幕| 最新中文字幕av无码专区| 国产午夜无码片免费| 人妻系列无码专区无码中出| 久久久无码精品亚洲日韩京东传媒| 国产区精品一区二区不卡中文| 亚洲成A∨人片天堂网无码| 国产乱子伦精品无码码专区| 亚洲一区AV无码少妇电影☆| 婷婷四虎东京热无码群交双飞视频| 中文字幕乱码人妻一区二区三区| 免费无遮挡无码视频在线观看| 久久久久亚洲av无码专区喷水| 亚洲AV无码片一区二区三区| 日韩精品无码一区二区视频| 亚洲乱码中文字幕手机在线| 最近中文字幕高清免费中文字幕mv| 亚洲人成中文字幕在线观看| 中文字幕久久精品无码| 中文字幕亚洲欧美日韩在线不卡| 亚洲国产精品无码久久久久久曰| 国产精品无码免费专区午夜| 精品久久久久久无码国产| 无码人妻丰满熟妇啪啪| 无码人妻精品一区二区蜜桃AV| 久久无码人妻精品一区二区三区| 免费A级毛片无码无遮挡 | 亚洲 无码 在线 专区| 亚洲精品无码激情AV|