Consumer spending set to power future growth

The free-spending younger generation is fueling China's transition from an export-led economy to one driven by domestic consumption. Wang Yanfei reports.

Concerns about China's slowing growth rate may be overplayed, according to economists and analysts, who said long-term growth will be driven by industrial upgrades steered by changing patterns of domestic consumption and constantly rising consumer spending as a percentage of GDP.

Last year, consumer spending accounted for 65 percent of China's GDP, far higher than the 42 percent recorded a decade ago, data from the National Bureau of Statistics show. By comparison, domestic consumption accounted for about 61 percent of GDP in Japan and 68 percent in the United States.