As the Year of the Snake unfolds, China's 2025 Spring Festival has kicked off with a significant boost in consumer spending. Regions across China have introduced a variety of policies aimed at unleashing consumption potential, including the distribution of vouchers for sectors such as culture and tourism, retail and dining, as well as automotive and home appliances. These initiatives are designed to stimulate the holiday economy and maintain economic vitality.
Consumption has emerged as the primary driver of China's economic growth, playing a crucial role in stabilizing the country's economic trajectory. In 2024, final consumption expenditure accounted for 44.5 percent of economic growth, outpacing investment at 25.2 percent and net exports at 30.3 percent. The Central Economic Work Conference has emphasized the importance of vigorously boosting consumption and expanding domestic demand in 2025, highlighting the need to create more consumption scenarios and fully tap into residents' spending potential.
The impact of holiday consumption is particularly noteworthy. Traditionally, holiday spending accounts for about 10 percent of the total annual retail sales of consumer goods. However, research indicates that during the 2024 Spring Festival, sales of fast-moving consumer goods reached 20 percent of the annual total. Popular purchases during this period include automobiles, home appliances, and liquor. The Ministry of Commerce reported that national online retail sales during the 2025 Chinese New Year Shopping Festival surpassed 700 billion yuan ($96 billion), underscoring the strong consumer response.
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Consumption market ushers in strong start to the Year of the Snake
cgtn.com
