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By Chen Changsheng, Xu Wei, Li Chengjian & Lan Zongmin, Department of Macroeconomic Research, DRC

Research Report, No.181, 2021 (Total 6246) 2021-7-1

Abstract: Consumption is an important driver for boosting economic growth and building a new development pattern. In recent years, Chinese residents’ consumption growth has slowed down. Especially due to the impacts caused by COVID-19 pandemic on consumers worldwide, the global economy faces a downturn performance in consumption market, and China is no exception. This problem relating to downward consumption trend has drawn wide concern from both policy-makers and economic researchers. Actually, compared with other major economies, China’s consumption market is less affected. As Chinese consumers are gaining more and more spending competence, it is hoped that the consumption market could resume its performance prior to the outburst of the pandemic. However, the middle-income earners’ consumption is greatly impacted by the pandemic; the sluggish service consumption restricts the rebound of consumption performance; unbalanced employment opportunities and social security programs remain a stumbling block in consumption market. To cope with these problems, the policy focus needs to be placed on strengthening pandemic prevention and control, stabilizing employment and enhancing relevant social security programs.

Keywords: consumption trend, COVID-19 pandemic, global impact, short-term influence