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China strives for faster retail growth

(Xinhua)
Updated: 2009-11-29 10:14

BEIJING: China will strive for a higher growth rate for retail sales in 2010 with a bigger contribution to next year's GDP increase, the Ministry of Commerce (MOC) said on Saturday.

Consumption was the key drive force for China's economic recovery in 2009, said Jiang Zengwei, vice minister of commerce, at a forum in Beijing on the development and reform of China's circulation industry.

The country's economy grew 8.9 percent year on year in the third quarter this year, accelerating from 7.9 percent in the second quarter and 6.1 percent in the first quarter, according to the National Bureau of Statistics (NBS).

The MOC will take measures to boost both rural and urban consumption in 2010 to push up economic growth, said Jiang.

He said the MOC will expand the "old-for-new" program to encourage more consumers to buy new cars and home appliances on a basis of discount if they give up their old ones to sellers.

Credit consumption and sales promotion, especially those during holidays, will also be encouraged by the MOC, according to Jiang.

The country's retail sales are predicted to increase 18.2 percent year on year in 2010, boosted by domestic consumption and income growth, according to a recent report by Beijing-based Renmin University of China.

The NBS data showed retail sales in October rose 16.2 percent year on year to 1.17 trillion yuan (US$171.3 billion).

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