From CNBC: 2024-07-25 06:50:41

China’s retail sales grew by 3.7% in the first half of the year, prompting authorities to allocate 300 billion yuan in special government bonds to boost consumption. The policy offers subsidies for vehicle purchases, equipment upgrades, and home appliances to support economic growth and meet the 5% target.

The move comes as China’s consumer spending remains sluggish, with retail sales growing at a slower 2% in June. Concerns about lackluster spending have led to calls for consumption vouchers and support from industry leaders. China’s retail sales growth in the first half of the year was 3.7%, slower than the pace recorded in the year-ago period.

Analysts note that the pressure to spur consumption is high, particularly as the housing market shows no clear turning point. Despite challenges, China’s economy could see growth of 5.3% this year with the newly announced reform measures in place, compared to 5.1% without them.

Read more: China to use ultra-long bonds for consumption as retail sales slump