China targets ways to boost domestic demand for economic growth

By Xiuhao Chen, ‌Shi Bu and ​Liz ​Lee

BEIJING, March 4 (Reuters) - China will increase its output of high-quality consumer goods and foster ‌new growth points for services consumption in efforts ⁠to boost domestic demand aimed at propping up economic growth this ‌year.

Consumption is the main ‌driver of the country's economy, having contributed 52% of the country's economic growth last year, National People's ​Congress (NPC) spokesman Lou Qinjian told reporters on Wednesday.

Total retail sales of consumer goods exceeded 50 trillion ⁠yuan ($7.22 trillion) for the first time last year, he said.

Lou said China will ​also promote high-quality employment and work to raise the incomes of urban and rural people ​to enhance their capacity to ‌consume.

Chinese policymakers have been struggling to reverse stubborn weakness in domestic demand. The imbalance ⁠of supply and demand in the economy has also kept multi-year deflationary pressures on factory-gate prices.

The NPC's Standing Committee ⁠will oversee the formation of a unified domestic market and revitalise ​rural areas, Lou said.

Efforts this year will include formulating laws and plans for social and medical security including for childcare, as ‌well as to invest more resources in the livelihoods of the people.

"So that the ‌people can consume, dare to consume and are willing ⁠to consume," Lou said.

($1 = ‌6.9215 Chinese yuan ​renminbi)

(Reporting by Xiuhao Chen, Shi Bu and Liz Lee; Editing by Christian Schmollinger and Thomas ‌Derpinghaus)

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