China’s commercial sector to get 2024 boost from rural commerce, green products, ‘silver’ economy: analysts
- Retail sales will grow by more than 6 per cent thanks to supportive policies and higher consumer confidence, Hong Kong-based think tank says
- In-store experiences, eco-friendly products and products catering to China’s ageing population will help drive growth
China’s commercial sector will see a rebound in 2024 as retail sales are expected to grow by more than 6 per cent thanks to supportive government policies and recovering consumer confidence, according to a Hong Kong-based think tank.
Despite gloomy prospects for the property market, China’s gross domestic product (GDP) may grow 4.8 per cent this year, Fung Business Intelligence said in its “Ten Highlights of China’s Commercial Sector 2024” report released on Friday. Sectors with strong growth potential, including rural commerce, green products and the “silver” economy catering to older consumers, will help drive growth in commerce, the report said.
“The government’s more proactive economic policies and expectations for China’s steady economic growth will help China’s consumer market recover this year,” said Chang Ka-mun, senior adviser with the think tank.
Retail spending in China jumped 7.2 per cent year on year to 47.1 trillion yuan (US$6.6 trillion) in 2023, according to the National Statistics Bureau.
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Service consumption rebounded in 2023 as people sought experiences they missed during the pandemic, with sectors such as catering, culture, tourism and entertainment seeing a resurgence in business, the report said.