China Economic Review: Total consumption has leapt to a new level, and vigorous domestic demand has promoted high-quality development

Source: China Economic Network

Core view: Mr. Zifang, a commentator of China Economic Network, believes that there are many favorable conditions and a lot of room for efforts to further stimulate consumption potential. There is still room for improvement in product quality, emerging consumption still needs to develop and grow, the consumption environment can continue to improve, and the consumption capacity must continue to improve... Proceeding from reality, doing our best, doing what we can, solving these problems, letting the people eat at ease, dress well, use comfortably, and promote high-quality development with vigorous domestic demand, china's economy will be more resilient and dynamic.

Consumption is both the starting point and the end point of the entire economic cycle. Based on the market economy, consumption is sunshine, air and water, and will naturally continue to pay attention. Recently, the 2021 China Economic Annual Report was officially released. A series of eye-catching data show that China's economy continues to recover and develop, achieving a good start in the "14th Five-Year Plan". Among them, the total retail sales of social consumer goods exceeded 44 trillion yuan, an increase of 12.5% year-on-year, and the average growth rate of the two years was 3.9%. Final consumption expenditure contributed 65.4% to economic growth.

"Total consumption of 44 trillion yuan is a new stage." It should be noted that the scale is gradually expanding, the level is steadily improving, the structure is constantly improving, the upgrading trend is continuing, and the main pulling effect of consumption on economic growth has further emerged, becoming a vivid epitome of the continuous improvement of China's economic "value". This is due to the full play of the advantages of the socialist system with Chinese characteristics, the struggle of more than 1.4 billion people, the ability support of the complete industrial system of the big country economy and the vitality of the super-large-scale market advantage.

Life needs fireworks and also craves color. In 2021, the Engel coefficient of national residents was 29.8%, a decrease of 0.4 percentage points over the previous year. This means that in addition to eating, people have more consumption choices and more possibilities for life. "Orders and free mail" domestic goods tide brand to meet the fashion needs of young people; watch cinema blockbusters, mobile phone booking tickets can also choose seats; to scenic spots, scan the two-dimensional code can listen to the introduction of attractions... In 2021, the consumer demand for upgrading will continue to be released, and the retail sales of gold, silver, jewelry and cultural and office supplies of units above designated size will increase by 29.8% and 18.8% respectively. It can be said that the scope of consumption is broadened and extended, and the consumption trend is surging endlessly, which not only lights up the color of life, but also adds impetus to economic development.

However, it should also be noted that since the second half of 2021, the epidemic situation in many parts of the country has been sporadic, which has repeatedly caused short-term impacts on the consumer market. During this period, the incomes of some low- and middle-income groups with weaker risk response capacity have also been affected, and consumer confidence and expectations have not been well repaired. According to the data, the total retail sales of consumer goods in December last year increased by 1.7% year-on-year and fell by 0.18% month-on-month. To this end, further boosting consumption is still an important task. Recently, the National Development and Reform Commission issued the "Notice on Doing a Good Job in Promoting Consumption in the Near Future", proposing 10 work measures, requiring seizing the opportunity of the traditional peak season of consumption such as the Spring Festival and the Lantern Festival to promote a stable start to the economy in the first quarter.

Further, the strong purchasing power of the 400 million middle-income group is a huge consumption force unmatched by any country, and it is also the most reliable guarantee for the sustainable development of the consumer market. For enterprises, it is necessary to go from "boring production" to "embracing new needs", and constantly introduce products and services that are more in line with consumer tastes; adopt flexible manufacturing technology to personalize products in large quantities; and dataize consumer needs to ensure that the products on the production line are the products that people need. It is necessary to create new demand with new supply, promote the formation of a virtuous circle between consumption and supply, and achieve a new dynamic balance between the industrial structure and demand structure at a higher level.

Of course, only with money can we consume, and only when we have security can we dare to consume, which is still an unbreakable truth. To further stimulate consumption potential, there are many favorable conditions and a lot of room for efforts. There is still room for improvement in product quality, emerging consumption still needs to develop and grow, the consumption environment can continue to improve, and the consumption capacity must continue to improve... Proceeding from reality, doing our best, doing what we can, solving these problems, letting the people eat at ease, dress well, use comfortably, and promote high-quality development with vigorous domestic demand, china's economy will be more resilient and dynamic. (China Economic Network commentator Mr. Zifang)