Measures to boost consumer spending

Tourists pose for a photo on Beijing’s Qianmen pedestrian street on October 1, 2022. [Photo/CFP]

China’s latest move to implement a package of policy measures such as boosting consumption is expected to further improve consumers’ purchasing power, boost consumption recovery and stabilize the country’s economic growth, officials said. experts.

Their comments came after it was announced at a State Council executive meeting on Wednesday that China would promote the recovery of consumption as the main driver of the economy.

Construction of key projects and upgrading and renovation of amenities should be better aligned with the goal of boosting consumption, and public works programs will be expanded to create jobs, raise incomes and boost consumption, according to a decision taken during the meeting.

Upgrading and renovation of equipment by micro, small and medium-sized and consumer-related enterprises will be supported by special loan facilities and government-funded interest rate subsidies, he added.

Wang Yun, a researcher with the Academy of Macroeconomic Research, said the latest stimulus measures aimed at boosting consumption demonstrated the country’s intensified efforts to fully play the fundamental role of consumption in economic growth.

“China’s retail sector saw a resumption of growth in the third quarter of this year, demonstrating the strong resilience of the country’s consumer market,” Wang said, noting that the growth in consumption will continue to grow. will accelerate in the fourth quarter.

She said the new support policies mainly focus on expanding employment, increasing residents’ incomes, improving their purchasing power, as well as improving the supply of goods. of consumption.

Wang added that special loan facilities for equipment upgrade and renovation will encourage more enterprises to update their equipment and accelerate product innovation to meet the demand generated by the upgrade. continuous level of the country’s consumption.

Consumption has become the foundation of China’s stable economic growth. Data from the National Bureau of Statistics showed that China’s final consumption expenditure contributed 52.4 percent of national economic growth in the third quarter, leading to GDP growth of 2.1 percentage points.

While economic activities are generally picking up, China’s consumer market warmed up in the third quarter. The country’s total retail sales of consumer goods, a key indicator of consumption, rose 3.5% year-on-year in the third quarter, reversing the 4.6% drop recorded in the second quarter.

In the first three quarters, total retail sales of consumer goods reached 32.03 trillion yuan ($4.4 trillion), up 0.7 percent year on year, compared with the downward trend in first half, when the number fell 0.7% year-on-year. , the BNS said.

China has rolled out a series of measures to promote consumption recovery, including boosting consumption in key areas such as automobiles, green and smart home appliances, and catering and accommodation.

Zhao Ping, deputy director of the China Academy Council for the Promotion of International Trade, said China’s consumer market is expected to experience growth momentum in the coming months, fueled by better containment of the COVID pandemic. -19, a series of supporting policies for the strengthening of consumption and the continued recovery of industrial and supply chains.