BCN-10 China’s service consumption on fast growth in H1

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ZCZC

BCN-10

CHINA-ECONOMY-CONSUMPTION

China’s service consumption on fast growth in H1

BEIJING, Aug. 6, 2018 (BSS/Xinhua) – China’s consumption of services in
sectors including tourism, culture, and sports registered fast growth in H1,
according to the National Development and Reform Commission (NDRC).

In the first half, service consumption in tourism, culture, sports,
eldercare, and housekeeping accounted for 40 percent of total household
consumption, according to Liu Yunan, an NDRC official.

China’s tourism market continued to expand, with domestic tourism revenue
rising 12.5 percent year-on-year in H1.

Both investment and consumption in the culture industry showed good
performance in H1. Fixed asset investment in the culture industry climbed
17.5 percent from a year earlier, while China’s box office sales went up 17.8
percent year on year.

With an aging population, demand for eldercare services have been on the
rise. By June, the number of elderly care institutions and facilities reached
156,000, with over 7 million beds and more than 700,000 workers.

Sports, a sector with great potential in China, also saw marked growth,
said Ou Xiaoli, another NDRC official.

Ou forecasts that by the end of 2018, the added value of the sports
industry will contribute to over 1 percent of China’s GDP, contributing to
nearly a trillion yuan (about 146 billion U.S. dollars) in consumption and
creating over 4.4 million jobs.

China is seeking to transition from an economy reliant on investment and
exports of low-value-added goods to a consumption, service-driven one.

In H1, retail sales expanded 9.4 percent year-on-year to reach 18 trillion
yuan, with final consumption expenditure contributing 78.5 percent to
economic growth.

BSS/AFP/HR/1040