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By Wang Wei & Wang Nian, Institute of Market Economy, DRC

Research Report, No.279, 2020 (Total 6023) 2020-11-25

Abstract: Consumption serves as an anchor for stable economic growth. The COVID-19 outbreak and rapid contagion had created an immense impact on China’s consumption, with short-term consumption seriously restricted and the market demand sharply decreased. Since the third quarter of 2020, with the swift resumption of work, production and business activities, national economy has witnessed a booming performance in consumption market, which has in turn boosted online consumption, the selling of domestic products and consumption reflux. With the recovery of global economy, China’s rapid economic development and continuous improvement of domestic consumption market environment, the Chinese consumers’ confidence, willingness and ability will be enhanced and consumption environment will become optimized. It is expected that the total retail sales of consumer goods will grow around 3% in the fourth quarter this year, the annual consumption scale will approach that level year on year. And for the next year, the total retail sales of consumer goods are expected to grow by 4% to 5%, with consumption playing a greater role in driving economic growth.

Keywords: consumption momentum, prospects, policy options