Domestic consumption will play an increasingly vital role in stimulating China’s economic growth in 2025, according to the country’s Central Economic Work Conference held in December 2024. Retail sales in 2025 are expected to see 5 percent growth, up 1.5 percent year-on-year. Facing insufficient domestic demand caused by lower incomes and a sluggish market, China has rolled out policies such as trade-in programs for cars and home appliances, boosting household incomes and stimulus strategies designed for people at different ages. To increase individual incomes, the country will continue to issue marriage and childbearing subsidies and raise pensions. Meanwhile, localized commercial activities like village soccer games in Guizhou Province or barbecues in Zibo, Shandong Province will continue to boost the market. Experts suggest China should adopt multilayered approaches to unleash domestic consumption while pursuing sound and sustainable economic development.
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