Chinese consumers expect rising incomes

18 February 2010

BEIJING: Around 60% of Chinese consumers expect their income to increase this year, reflecting the continued economic growth of the world's most populous nation.

According to the new survey - which was conducted by the National Bureau of Statistics (NBS), CCTV, the state-owned TV network, and the China Post, 27% of residents said they expect a significant income increase for 2010.

Consumers living in Hainan island, a domestic tourism hub, were the most optimistic overall.

A slim majority (54%) of respondents cited rising house prices as their single biggest financial worry, while six in ten people living in Beijing and Shanghai said they were not planning to buy a home in 2010.

Computers were found to be the product the largest number of people wished to buy this year, with travel and cars coming in second and third places respectively.

The survey consisted of a paper questionnaire sent to 100,000 families across 300 different counties.

Results of the research were unveiled in an article in Beijing newspaper Guangming Daily by NBS chief economist Yao Jingyuan.

China's exports-dependent economy has suffered in the adverse financial conditions of recent months, with depressed global consumer demand leading to factory closures and layoffs.

However, this has been counteracted by a massive government stimulus package, boosting domestic demand.

Annualised GDP growth rates increased throughout 2009 in China, rising from 6.2% in Q1 to 10.7% in Q4.

Figures from the NBS show that disposable incomes for Chinese people living in urban areas grew by 8.8% to 17,175 yuan ($2,513; €1,833) last year.

Meanwhile rural residents had a disposable income of 5,153 yuan, up by 8.2% on an annual basis.

Data sourced from Xinhua; additional content by Warc staff