Spending time for growth

Country needs concrete policies to encourage people's spending and balance urban and rural public services

Acountry's consumption level serves as an important index to measure whether or not it has put in place a development strategy that prioritizes the growth of people's incomes and the improvement of their living conditions. It also remains a key factor in determining whether the country can realize social impartiality and sustainable development.

The reason for the lingering low-level consumption in proportion to the gross domestic product (GDP) in China in recent years is its prevailing economic growth model that is heavily dependent on investment and exports. The country has promised to develop a consumption-driven economy instead of an investment-driven one in the 12th Five-Year Plan (2011-2015), but this will depend on whether the country can successfully push forward a series of sweeping and deepened reforms in some key areas.