China to be the world’s largest consumer market over the next 5 years, expert believes

Almaty. October 31. Silkroadnews – For quite a long time China will be the world’s largest consumer market, Chi Fulin, director of the China Institute for Reform and Development believes.

“Optimization of China’s 1.3 billion population consumption structure is a huge potential for the Chinese market development”, “Xinhua” agency quotes the scientist saying.

According to his forecast, by 2020 the share of expenditures of the country’s urban population in the total volume of consumer spending will rise to 50% from 40% in 2015. Total consumption of urban and rural residents of the country will grow from 36 trillion yuan in 2015 to 50 trillion yuan in 2020. The contribution of consumption in China’s economic growth will remain at a level above 65%.

Besides, the producers’ services industry is growing in the country quite rapidly. The projections are that the GDP’s share of service industry will increase from 52.8% in late September 2016 to 58% in 2020.

Chi Fulin also said within the coming 5-10 years China will boost the process of transition from a rural to an urban society. At the same time, the leaving for the cities the rural residents will contribute to the consumer and investment demands growing.