Consumption becomes ballast stone for China's stable growth

As China's economic transition swiftly continues, consumption has become a ballast stone for stable economic growth, official data showed Tuesday.

A citizen buys vegetables in a supermarket in Harbin, April 10, 2018. [Photo: VCG]

Final consumption contributed 58.8 percent to economic growth in 2017, up from 45.3 percent in 2007, the National Bureau of Statistics (NBS) said on its website.

Retail sales, a main gauge of consumption, rose 9.7 percent year on year in the first two months of the year. Data for March is due to be released on April 14.

The NBS said strong income growth and consumption upgrade have driven up consumption in healthcare, education, and entertainment, which all maintained double-digit increases during the past few years.

With the economy transitioning from a phase of rapid growth to a stage of high-quality development, there will be huge potential for consumption growth, according to a separate statement on the National Development and Reform Commission website.

Domestic demand, including consumption and fixed-asset investment, has become a decisive force for economic growth, adding 105.7 percent on average to GDP growth annually between 2008 and 2017.

The NBS said domestic demand will remain a booming growth engine as the country continues to push through supply-side structural reform and innovation-driven development.

The economy expanded 6.9 percent year on year in 2017. The government has targeted growth of around 6.5 percent for this year.