BEIJING: China is expected to put boosting domestic demand, especially spurring consumption, at the core of its economic agenda this year.
With this, policymakers will likely roll out stronger fiscal support and structural reforms to further unlock the potential of household spending, a senior expert said.
Wang Wei, senior researcher and former director of the Institute of Market Economy at the Development Research Centre of the State Council, said that to ensure stable economic growth during the 15th Five-Year Plan (2026 to 2030) period, China needs to achieve a notable increase in final consumption as a share of gross domestic product (GDP).
“That means China’s future economic growth will need to rely more on domestic demand, particularly on the sustained, steady growth and innovation of consumption, to provide effective support for overall growth,” Wang said.
She added that China has finished the “from nothing to something” stage of household consumption over the past four decades, but the next phase – especially under high-quality development – must focus on improving consumption quality and expanding the space for development-driven consumer demand.
“Services consumption such as education, healthcare, culture, sports, entertainment and eldercare will have very large room for growth as people’s living standards rise.
“With the impact of technological innovation, many new forms of innovative consumption are also entering daily life, forming new drivers of growth.”
Wang expects that during the 15th Five-Year Plan period, China’s final consumption expenditure may exceed 90 trillion yuan (US$12.99 trillion), accounting for around 60% of the country’s GDP.
“The contribution of final consumption to economic growth will remain above 60%, and the share of household services consumption in total consumer spending will rise to 50%,” she said.
According to the Recommendations of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for National Economic and Social Development, over the next five years, China should achieve a notable increase in household consumption as a share of GDP.
It also emphasised that special initiatives should be advanced to boost consumption, and the supply of high-quality consumer goods and services should be expanded.
China should focus on easing market access and integrating various forms of business to boost consumption of services and strive to build market-leading brands, raise standards, and apply new technologies to expand and upgrade goods consumption.
To that end, in 2026, consumption should remain the priority of economic development. — China Daily/ANN
