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China aims to boost consumer spending next year

(Agencies)
Updated: 2008-12-03 11:30

China's efforts to shore up economic growth will focus on boosting consumer demand next year by pouring more money into housing, education and healthcare, a state think-tank stated on Tuesday.

The report by the State Information Center said the government is shifting from "steady" to "active" fiscal policies, but efforts to expand domestic spending face resistance from consumers who are afraid to spend because they believe they must save up for future healthcare costs and other burdens.

The report, published in the China Securities Journal, said the solution is to pour more state revenues into these areas.

"Next year, a focus of financial policy will be addressing the problem of residents' low consumption by investment in building welfare housing, accelerated development of healthcare and education ... strengthening residents' capacity and willingness to spend," it said.

The report from the Beijing-based think-tank also foresees continued expansion of bank lending and "maintaining reasonable monetary and credit growth."