Domestic demand continues to recover and steadily expands
2023-12-05
Since the beginning of this year, domestic demand has steadily expanded, the total retail sales of consumer goods and fixed assets investment and other indicators have rebounded significantly, consumption has continued to recover steadily, and investment has maintained a growth trend. With China's continuous promotion of reform, opening up and innovation, focusing on promoting high-quality development, and accelerating the construction of a new development pattern, the domestic economy has maintained a good trend of stabilization and recovery. The surging consumption momentum and steady contribution of domestic demand are the fundamental driving forces for China's economic development. Since the beginning of this year, China's economy has withstood the downward pressure brought about by the interweaving of foreign risks and challenges and multiple domestic factors. Consumption has recovered rapidly, investment has continued to grow, and the contribution of domestic demand has steadily increased. In the third quarter, final consumer spending drove economic growth by 4.6 percentage points, contributing 94.8% to economic growth, an increase of 10.3 percentage points from the second quarter; The contribution rate of total capital formation to economic growth is 22.3%, driving a 1.1 percentage point increase in gross domestic product. The relevant indicators continue to rebound, reflecting the continuous release of domestic demand potential. Taking consumption as an example, since the comprehensive restoration of normal economic and social operation, offline consumption has resumed in an orderly manner, and the policy of expanding domestic demand to promote consumption has continued to show effectiveness. The recovery of consumption has accelerated, becoming the main driving force for economic growth. Especially, the recovery of service consumption is accelerating. In the first three quarters, the retail sales of services increased by 18.9% year-on-year, which was 13.4 percentage points faster than the retail sales of goods. In the first 10 months, the retail sales of services increased by 19% year-on-year, which was 0.1 percentage points faster than the previous 9 months. The rebound in consumption reflects an increase in consumer confidence. From a monthly perspective, the total retail sales of consumer goods in July, August, September, and October increased by 2.5%, 4.6%, 5.5%, and 7.6% year-on-year, respectively, showing a clear trend of stabilization and recovery. The growth rate of commodity consumption accelerated in October, with a year-on-year increase of 6.5% in retail sales, which was 1.9 percentage points faster than the previous month. Upgraded products such as outdoor sports, new electronic products, new energy vehicles, and smart home appliances are showing good growth momentum. Expanding consumption is fundamentally about promoting employment, improving social security, optimizing income distribution structure, expanding middle-income groups, and enhancing consumption capacity by increasing household income. In the first three quarters, the per capita disposable income of residents in China was 29398 yuan, a year-on-year actual increase of 5.9%, which was 0.1 percentage points faster than the first half of the year. "Chinese residents have a wide consumption space and great potential," said Ning Jizhe, Vice Chairman of the China International Economic Exchange Center. China has a population of over 1.4 billion, more than 400 million middle-income groups, and 264 million elderly people aged 60 and above. There is a high demand for housing, medical treatment, education, elderly care, and childcare. To release this huge demand, we need to improve social expectations, boost development confidence, increase household income through multiple channels, focus on increasing the income of middle and low-income groups, fill the gaps in public services, and eliminate the worries of residents who are afraid to consume. Investment is the combination point of supply and demand synergy. In the first 10 months, the national fixed assets investment increased by 2.9% year on year. Against the backdrop of continuous adjustment in the real estate market, investment growth has shown strong resilience. At the same time, there have been many positive changes in the investment structure. Data shows that the investment in high-tech industry in the first 10 months increased by 11.1% year on year, 8.2 times faster than all fixed assets investment
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：economic daily
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