China's spending spree has room to grow

Beijing -- The growth of China's economy can be measured in its vast market potential and by the growth in domestic spending, which reached $2,456 per capita in 2007.

China's growth in spending has averaged 13.1 percent a year since 2002, the official state-run Xinhua news agency reported Tuesday. Domestic spending now exceeds investment and exports in China's gross domestic product, but still is 28 percent below the world's average, the report said.

China is now the world's largest market for mobile phones, tourism and broadband services, Vice Minister of Commerce Yu Guangzhou said recently at the China Economic Development Forum.

Analysts report that Chinese exports will continue to level off in 2008. But, Yu said China will be the world's largest market for luxury goods by 2014, claiming 23 percent of the world market in that category.

China expects 2.8 billion visitors by 2015, Yu said, while 100 million Chinese tourists will visit abroad, making China the 4th largest source of tourists.

Imports have an annual growth rate of 26 percent, the report said.

Copyright 2008 by United Press International.