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China's economic watch says consumption plays a crucial role in boosting the country's economy.
According to China's economic watch, the country is working on profiting from its consumption potential in order to keep economic fundamentals stable and improve people's lives, as it is considered a primary engine for economic growth in China.
According to the numbers, in the first quarter of the final consumption furnished a 69.4 percent of the growth of the gross domestic product, which continued to rise 4.8 percent year on year. Sales of consumer goods have appreciated a growth of 3.3 percent year on year during the first quarter, but in March, it was reduced to 3.5 percent, the first decrease since August 2020, which was caused by the resurgences of COVID-19 cases.
Chen Lifen, a researcher with the Development Research Center of the State Council, has said that it is time to let consumption play a more significant role in the economic cycle, adding that the country should further highlight the importance of consumption in boosting economic growth. According to the report issued by the global consulting firm Ernst & Young (EY), Chinese consumers are more likely to be optimistic about the future, in sharp contrast to the declining global consumer confidence.
The Asian country has established some policies intended to tackle the impact of the COVID-19 pandemic and to expand the revival and growth of consumption. Last April, the Chinese government released guidelines to take advantage of its consumption potential further.
Jinan, capital of East China's Shandong province, is transforming itself into an influential and competitive global consumption center.The city will build a series of consumption-oriented commercial blocks and cross-border trading platforms. pic.twitter.com/XNM8kdzlMD
The guidelines said that the country would develop products and services according to the needs of the elderly and infants when they encourage innovations in cultural consumption. By promoting the sales of automobiles and home appliances in rural areas, the country will tap the consumption potential in these regions.
According to experts, regardless of the multiple challenges, consumption will be revived, supporting the economy's growth, as COVID-19 cases will decrease and the measures will unleash consumption.