Domestic consumption is expected to contribute more than 60% of China's GDP growth in 2018, China Daily reported, citing a report from the China Council for the Promotion of International Trade Academy.
Total retail sales of consumer goods in the country are estimated to reach 40 trillion yuan in 2018, with a nominal annual growth rate of about 10%.
Ning Jizhe, head of the National Bureau of Statistics, said domestic demand has been a key pillar of China's economic growth. "From 2013 to 2016, the annual contribution rate of domestic demand to economic growth surpassed 100%, and the figure for the first half of 2017 was 96%," Ning said.
According to the CCPIT, increases in average income levels have spurred consumption, with service consumption as the "lone bright spot and the mainstay of the economy."
Experiential consumption, or consumption driven by a desire for memorable experiences, which is part of service consumption, has seen steady growth, the council said.
E-commerce transactions, such as buying products from self-service supermarkets or purchasing flowers online, are expected to trigger spending growth, said Zhao Ping, director of the international trade research department at CCPIT Academy and author of the report.
She said the innovative commodity consumption sector, such as smart homes and internet-connected cars, will see significant growth.
As of Feb. 7, US$1 was equivalent to 6.27 Chinese yuan.
