China's retail sales of consumer goods are predicted to surge 13
percent to hit 8.6 trillion yuan (US$1.075 trillion) in 2007, said
the Ministry of Commerce on Tuesday.
Retail sales reached 6.21 trillion yuan in the first 10 month of
this year, up 13.6 percent over the same period last year, the
biggest year-on-year increase since 1997.
Influenced by spiralling fixed assets investment and growing
exports, markets for production materials and oil products
maintained fast growth, the report said.
Sales of production materials amounted to 14.4 trillion yuan in
the first 10 months, up 18.2 percent. Sales of refined oil grew
45.8 percent.
Rural markets have been expanding rapidly this year, with retail
sales of consumer goods reaching 2.01 trillion yuan in the first 10
months of the year, up 12.4 percent, which was 1.4 percentage
points higher than the previous year.
The gap in the growth rates between urban and rural retail
markets dropped from 1.9 percentage points to 1.8 percentage
points.
The report predicted that China's prudent macro-economic
policies will keep the economy growing at a steady and fast pace in
2007, creating a favorable situation for the development of the
country's commodity market.
The rural market is expected to continue expanding as
infrastructure improves. Domestic consumption is likely to increase
as a result of the government's measures aimed at fairer income
distribution.
The report said the global economy and trade, which are
predicted to grow by 4.9 percent and 7.5 percent respectively in
2007, will also boost China's commodity market.
(Xinhua News Agency December 6, 2006)