Chi Fulin, the China Institute for Reform and Development President, said that reformation of China’s economy will become an important driver of global economic growth. China’s contribution to the global economy will remain at about 30% until 2021.
According to Chi Fulin, China will become the world’s biggest consumer market as optimized consumption structure of 1.3 billion Chinese nationals indicates a great potential for market development.
Experts forecast that the spending of Chinese city dwellers on services will make up 50% of their general consumer spending by 2020, up from 40% in 2015.
The total urban and rural expenditure will increase to 50 trillion yuan in 2020 from 36 trillion yuan in 2015. Thus, consumption will amount to 65% of the economic growth in China.
Besides, economists highlight quick expansion of the services sector. They expect that this sector will make up 58% of GDP in 2020 compared to 52.8% in late 2016.
Chi Fulin predicted that rural to urban transition will accelerate in the nearest 5-10 years. Increasing urban population will result in higher consumer and investing demand.
