Consumption Remains Main Driver of China's Economic Growth

Beijing (ANTARA) - Consumption remains the main driver of China’s economic growth, according to guest speakers on the latest episode of the China Economic Roundtable, a cross-media talk show hosted by Xinhua News Agency.

“In the first half (H1) of this year, the consumer market generally remained stable, service consumption grew quite rapidly, the consumption structure continued to improve, and various new drivers in the sector are increasingly developing,” said Huang Hanquan, head of the Chinese Academy of Macroeconomic Research under the National Development and Reform Commission (NDRC).

During this period, final consumption expenditure contributed more to economic growth than capital formation and net exports, underscoring the resilience of the country’s massive market.

“The shift towards services in household spending is increasingly clear, with the share of service consumption expenditure rising steadily,” said Wang Guanhua, an official at China’s National Bureau of Statistics (NBS).

Retail sales of services grew 5.3 percent year on year (yoy) in the first half, outpacing retail sales of goods by 4.2 percentage points, Wang said.

He noted that segments including tourism, consulting and leasing, as well as various cultural, sports and recreational activities, all maintained double-digit growth.

“Emotional consumption and experience-based consumption continue to gain traction. The travel and tourism sector remains popular, while tickets for major concerts, live performances and sporting events often sell out. These are clear examples of the sustained unleashing of China’s household service consumption potential,” Wang said.