BEIJING (Xinhua) – Consumption is expected to remain the largest contributor to China’s economic growth in 2019, a Ministry of Commerce (MOC) official said.
Deputy Director of the Department of Market Operation and Consumption Promotion at the MOC Wang Bin said at a recent meeting that consumption is expected to contribute to 65 per cent of economic growth in 2019, with an expected nine-per cent increase in total retail sales of consumer goods.
China’s consumer market will continue its steady development and maintain a stable and positive outlook regardless of the negative factors and pressure, Wang added.
The three-day New Year holiday saw a robust start of China’s consumption market in 2019, with the retail sales of 60 Beijing-based business service companies hitting 3.01 billion yuan (about USD438.6 million) during the period, up 6.3 per cent year on year, official data showed.
Meanwhile, consumption in Shanghai during the three days reached 13.5 billion yuan, up 10.6 per cent from the previous year.
To improve the consumption structure and let consumption play a bigger role in accelerating economic development, the country has launched various measures, including increasing the supply of goods and services, reducing tariffs, expanding imports and introducing policy incentives for cross-border e-commerce.
The pro-consumption policies introduced last year have pushed an upgrade in consumption by better matching the high-end demands with high-quality supply, MOC researcher Chen Lifen said.
MOC data showed China’s retail sales of consumer goods reached 34.5 trillion yuan in the first 11 months last year, up 9.1 per cent year on year, with consumption contributing to 78 per cent of the total economic growth.
Moreover, China has announced special individual income tax deductions to lower the tax burden of people with certain expenditures.