A report released by the Regional Planning Department under the State
Development and Reform Commission predicts that consumption will continue
growing fast in the second half of this year.
The report says that the state's policy of building a new socialist
countryside will boost domestic consumption. In the eastern coastal region,
consumption is expected to grow by 14%. In the west, due to a succession of
preferential policies offered to farmers, local consumer goods retail sales will
grow and the gap of these retail sales between the east and the west will
narrow. In the northeastern region, consumption is expected to increase by 12%.
Consumption structure in the eastern region will take a gradual turn for the
better and its consumption growth rate is still the highest of any other
regions.
Automobile, housing, and telecommunication expenditure remain
popular items among consumers. In addition, people's chase for brand name goods
and environmental-friendly goods has formed a new consumption trend. Consumption
will continue to grow fast in the catering sector, tourism, health-related goods
and service, education, culture and holiday-related goods and service. The
consumption gap between urban and rural areas will become smaller.
The report predicts that due to the state policy of building a new socialist
countryside, consumption in the western, northeastern and central regions will
grow faster than previous years. However, their growth rate will not be
significant in the second half of the year.
In the western and central regions, due to a series of preferential policies
offered to farmers, such as the abolition of agricultural taxes and tuition
fees, farmers' income has increased greatly, and the consumption market will be
expanded as well. Meanwhile, with the acceleration of industrialization and
urbanization in the regions, consumer goods retail sales will grow faster than
expected.
In the northeast, the retail sales have been on the increase. Since uncertain
factors remain in consumption items that are closely linked with people's daily
life, such as medical service, housing, education, and pension, the consumption
of other retail goods has been affected.
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