China's economy is undergoing a significant transformation in 2024, with service consumption emerging as a key driver of growth.
In the first half of the year, the service industry contributed over 50% to the national GDP, highlighting its crucial role in the country's economic landscape. According to the National Bureau of Statistics (NBS), total retail sales of consumer goods reached 23.6 trillion yuan ($3.3 trillion), marking a 3.7% increase year-on-year. Notably, retail sales of services surged by 7.5%, outpacing goods by 4.3 percentage points.
This growth is fueled by a rebound in offline and contact-based consumption, with service-oriented spending on the rise. As residents' income levels improve and their consumption preferences evolve, the demand for personalized, diversified, and high-quality services is growing rapidly.
Sales of upgraded goods are also on an upward trajectory. Retail sales of communication equipment and sports and entertainment products increased by 11.3% and 11.2% respectively. Additionally, the strong performance of emerging consumer goods like new energy vehicles and smart home appliances reflects a shift towards a higher quality of life.
In the service sector, industries such as catering, tourism, and cultural entertainment are experiencing a robust resurgence. During the Dragon Boat Festival holiday, the number of domestic tourists rose by 6.3%, and their total expenditure increased by 8.1%, underscoring the vast potential of service consumption in supporting overall economic recovery.
With continued improvements in income and changing consumer behaviors, the service industry is set to remain a pivotal factor in China's economic growth moving forward.
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