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Experts: More moves to boost consumer spending expected in new year

By Liu Yukun | chinadaily.com.cn | Updated: 2019-01-08 16:20
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Consumers shop at a mall in Chengdu, Sichuan province. [Photo/VCG]

China will see more measures to boost consumer spending in the new year, as a way to bolster the country's economy amid uncertainties from international trade relations, experts said.

"The year of 2019 will possibly see more policies coming out to encourage consumer spending, as China is likely to rely more on consumption than investment and exports," said Yang Cuihong, deputy division chief at the Center for Forecasting Science (CEFS) of the top-level think tank Chinese Academy of Sciences (CAS).

Till now, the country has already seen tax cuts for individuals and preferential policies to support consumer spending on electric-powered vehicles, travel, farm products and many other areas.

"Going forward, there might be measures to bridge the income gap between urban and rural citizens, although the latter have less pressure in housing and education, and enjoy more disposable income," Yang predicts.

She also noted that senior care and medical services will offer new momentum to drive consumption.

Yang's predictions seem to be well-grounded.

According to CAS-CEFS forecasts this Tuesday, consumption is estimated to contribute 4.7 percentage points to China's GDP growth rate in 2019. The growth rate is likely to reach 6.3 percent, 0.3 percentage points lower than that in 2018, which is still considered a sign of steady economic growth.

The figures, however, are much lower for investment and export, which are expected to contribute 1.9 percentage points and -0.3 percentage points to China's GDP growth, respectively. Yang said that international trade relations will continue to impact China's exports.

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