China targets ways to boost domestic demand for economic growth
Policymakers have been struggling to reverse stubborn weakness in domestic demand
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[BEIJING] China will increase its output of high-quality consumer goods and foster new growth points for services consumption in efforts to boost domestic demand aimed at propping up economic growth this year.
Consumption is the main driver of the country’s economy, having contributed 52 per cent of the country’s economic growth last year, National People’s Congress (NPC) spokesperson Lou Qinjian told reporters on Wednesday (Mar 4).
Total retail sales of consumer goods exceeded 50 trillion yuan (S$9.3 trillion) for the first time last year, he said.
Lou said that China will also promote high-quality employment and work to raise the incomes of urban and rural people to enhance their capacity to consume.
Chinese policymakers have been struggling to reverse stubborn weakness in domestic demand. The imbalance of supply and demand in the economy has also kept multi-year deflationary pressures on factory-gate prices.
The NPC’s Standing Committee will oversee the formation of a unified domestic market and revitalise rural areas, Lou said.
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Efforts this year will include formulating laws and plans for social and medical security, including for childcare, as well as to invest more resources in the livelihoods of the people.
“So that the people can consume, dare to consume and are willing to consume,” Lou said. REUTERS
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