BEIJING: China’s retail sales, a key gauge of domestic consumption in the world’s second-biggest economy, is likely to post slower growth this year compared with 2014, the commerce ministry said.
Retail sales may expand around 10.7% in 2015, Shen Danyang, spokesman at the Ministry of Commerce, told a news conference in Beijing on Thursday, without giving a reason. Retail sales rose 12%t last year.
In the first 11 months of 2015, retail sales grew 10.6% from a year earlier. In November, retail sales increased by an annual 11.2% – the strongest monthly expansion this year.
China’s external outlook remains gloomy. Chinese companies said global demand this year was worse than that during 2008/09 financial crisis, according to a recent survey by the commerce ministry of more than 6,000 firms in 70 key industries.
Subdued external demand, rising costs, slowing investment growth and the yuan’s appreciation have all weighed on China’s trade performance this year, Shen said. “Feedback from firms showed foreign trade was extremely difficult this year,” he said.
China’s net exports are likely to contribute around 12.3% to the increase in the country’s GDP this year, he said, citing data from a research unit under his ministry. China’s trade remained weak in November with exports falling a worse-than-expected 6.8% from a year earlier and imports tumbling 8.7%.
