China total retail sales of consumer goods

There is a sharp increase of 13.3 times in China’s retail sales of consumer goods from the year 1991 to 2009. This is due to the government’s efforts in increasing domestic demand and establishing more rapid economic development. In addition, another factor that contributes to the sharp increase in consumer goods is due to the fact that China’s standard of living has increased dramatically over the years. Relatively new and expensive consumer goods become more readily available as compared to the past. Furthermore, increasing number of people is able to afford these consumer goods.

As for the real growth in consumer goods, it can be observed that there is a decreasing trend in the last two years. One of the factors that caused retardation in the growth is inflation. Costs are rising due to increasing prices of energy and raw materials. And this leads to slower real growth rate in the sales of consumer goods. Increasing trend of real growth can only take place only if inflation can be kept under control.

Below is the chart of China total retails sales of consumer goods and real growth rate from year 1991 - 2009: