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China's three major boost consumer spending to stimulate economic growth momentum
transition
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Reporter : exhibition of January, Xiaoshan District of Hangzhou region retail sales
reached 790 million yuan, compared with the same period last year growth of 25.8%, a
record high.
In Shenzhen, the number of working communities in the New Year with a Spring Festival in
the new engine of the consumer market; People's spending habits with changing fashion
trends, mobile phone, MP3, digital cameras, etc. Zouqinfangyou as a New Year gift, a new
consumer market prospects Spring Festival.
January, the consumer market is active throughout the country.
"go to 'Shiyiwu' start of the first year, the economic growth rate is not bright, the
bright spots is the largest structural optimization, and the extensive growth pattern will
change a lot. the role of consumption in the national economy will protrude. structural
optimization is an important measure that consumer spur economic role. "Yao Jingyuan,
chief economist of the National Bureau of Statistics analysis said.
State Statistics Bureau's China Economic Prosperity Monitoring Center recently completed
China economist confidence survey also revealed that 45% of the economists think the 2006
annual consumption demand growth will "accelerate" and 8% think it will
"slow down", saying that "speed up" than that "slow down"
more than 37 percentage points. Economists believe 2006 also will tend to slow down the
growth of fixed assets investment, foreign trade surplus has narrowed trend.
Observers believe that China's economic growth after the export-oriented,
growth-stimulating investment after 2006 will begin to enhance spur economic growth
"three chariots" -- pulling power consumption. China began to consumption
stimulates economic growth orbit.
2005 China's economy to achieve GDP growth of 9% over smoothly. But with the high economic
growth in 2005 exceeded the aggregate supply aggregate demand, overproduction pressure
waves. Stimulating investment in the Chinese economy has shown more clearly by the
extensive features hidden risks.
Investment in the productive capacity of a large number of enterprises do not bring profit
increases. On the contrary, in 2005 China's economy emerged concern profit growth
enterprises fall. Yaojingyuan analysis : scale industrial enterprises in the first three
quarters of last year profit growth 20.1%, a 19.7% drop over the same period. Most of the
difficulties that industry profits. Further analysis profit industry profits, innovation
and technological progress can not be found, mainly from price increases.
Substantial investment of resources will also create capacity for more stringent
requirements, thus triggering the serious destruction and plunder of resources. From
existing resources by looking at the conditions, investment-driven economic growth model
has been hard to sustain.
On the other hand, insufficient domestic demand of a large number of production to
overseas markets, export huge increase, a huge trade surplus. January 2005 to October
trade surplus amounted to 80.4 billion yuan, more than double the 2004 annual consumption
of more of a structural imbalance of foreign trade, international trade environment
friction increased. While in the export structure is extensive, low value-added export
products, mainly in the form of low prices to expand the market, do not have
sustainability. Economic Forecast Department of the State Information Center, a senior
economist Ko Fai - that, as a big country, we should not be export-oriented, by other
countries to stimulate domestic consumer economy.
Experts believe that China's domestic demand conditional on the promotion of economic
development. Chinese residents currently in the development phase of the consumption
structure in the consumption of wealth accumulation, 2003, China's per capita GDP reached
1,090 US dollars, according to international experience, more than 1,000 US dollars per
capita GDP is the critical point of consumption structure, which indicates that China's
huge consumption growth space. At the same time China's households final consumption
services such as health care, culture, sports, entertainment, tourism, catering, home
economics, property management, not only the low weighting, and products with very small
market, but also herald the consumer in this regard has tremendous growth space.
How to raise domestic demand and stimulating economic growth for consumption? From
consumer groups perspective view, the main focus of China's three major groups, have been
or will soon introduce a series of policy measures to improve their spending power.
Boost consumption of rural residents
70% of the rural population consumption is an important component of China's consumer
market. Only in the consumer demand real start of China's economic growth will be away
from the traditional extensive.
China's "three agricultural" concerns shifted from food production to the
farmers income, and then to the welfare changes. China in 2006 began building a new
socialist rural deployment, the state construction funds will be invested mainly in urban
construction to build more support rural transformation. Urban and rural distribution
relationship was reversed. This is China's economic and social development of a
"historic shift". Economic and social change in rural outlook for farmers to
provide more living facilities, will help develop the capacity of farmers and consumer
channels.
Boost consumption of low-income urban groups
High income earners can not be effectively translated into efforts to stimulate domestic
consumption growth, consumption growth is dependent on the wider grassroots groups to
contribute. In low-income urban residents is an important component of the population.
Towns low-income persons often consumption tendency among groups most strongly. In recent
years, Chinese urban residents in low-income and high-income segments of the income gap is
widening, low-income revenues expected to decline, increasingly affecting consumer
psychological expectations.
China has begun to raise the income of low-income urban people. The revised law on
personal income tax since January 1, 2006 1997. Threshold from 800 yuan to 1,600 yuan, a
tax threshold significantly increase means that national disposable income of urban
residents increased to alleviate the burden of low-income groups, increasing purchasing
power and expand consumption of major significance.
In addition, efforts to solve the most concerned, the most direct and most realistic
interests were included in the 2006 economic work eight major tasks. And the people's
interests are closely related to education, health, employment, social security, etc.
These are fully integrated into the humanities and social indicators focus on vision.
These have the same focus on economic effectiveness : that is to reduce the burden of the
people to address consumer "about" can enhance the prospects of future residents
are expected to continue to expand the spot consumption expenditure, and also allows the
new round of consumption growth sustainability.
Boost consumption new main force
At the end of the 1970s the only child is born into the age consumption has grown into the
main force of the new consumption. The only child's spending habits have greatly different
from their parents, they are more inclined to spend money rather than save money. Sound
social security system in China, has employment in a prominent position, the job will be
to develop a more comprehensive liberal preferential policies for employment growth and
economic growth simultaneously, which will provide a new main force expanding consumption
stronger impetus. (Source : Economic Reference newspaper)
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