Xinli Zheng: Adjusting the Proportion of Resident Income in GDP will Promote Consumption Growth

When the vice minister of Policy Research Office of CPC Central Committee Xinli Zheng spoke of how the enterprises made operating decisions in the new period, he pointed out that the impact of the consumption growth of the urban and rural residents in the next few years on the whole national economy should be fully taken into account when a decision was made.

Zheng thought, at present the ratio of resident income to GDP in China showed a downward trend. In 2006 the resident consumption rate has even reached nadir in history, the situation was then “increasing investment, low consumption”. The adjustment of the proportion of resident income in GDP would in the next years promote the consumption growth.

Zheng has also prognosticated in “CBT 100” that by 2020 the families with annual income from 60,000 to 200,000 Yuan would account for 55%, of which about 6% families' annual income would exceed 200,000 Yuan.