Domestic Demand is Replacing Export Driver in Its Economy
Source: globecotnews Date: 2008-01-31
China's consumer power is rapidly expanding, increasing its role in economic growth. Morgan Stanley estimates that the country's exports and trade surplus only contributed a .30 percentage to fourth quarter 2007 GDP growth of 11.2 percent, which was down from 2.6 percent over the preceding six quarters. However, domestic demand increased, contributing 10.9 percentage points to fourth quarter GDP growth. In December 2007, consumer demand jumped 20.2 percent from the previous year and was up 18.8 percent from November gains. This growth in consumer demand illustrates the effectiveness of the government policy implemented several years ago to stimulate domestic demand and move from an export-driven economy to a consumer-driven one.
