China sees stable growth in resident income, domestic demand

China has made significant strides in expanding domestic demand, driven by steady growth in people's disposable income, and domestic demand now serves as a stable anchor for economic growth, an official said Tuesday.

On Jan. 20, 2026, the State Council Information Office holds a press conference in Beijing on implementing the guiding principles of the Central Economic Work Conference and ensuring a good start for the 15th Five-Year Plan period (2026-2030). [Photo by Liu Jian/China SCIO]

Zhou Chen, director general of the Department of National Economy of the National Development and Reform Commission (NDRC), highlighted these achievements at a press conference held by the State Council Information Office.

In 2025, the per capita disposable income in China grew by 5% in real terms, aligning with the country's economic expansion and strongly supporting domestic consumption. Domestic demand contributed to over 67% of GDP growth, with consumption alone accounting for 52%.

"This reflects a positive cycle in which new demand stimulates supply, supply in turn generates more demand," Zhou explained.

China has also seen notable upgrades in its consumption and investment structures, according to Zhou.

Consumers visit the 2025 Guangdong-Hong Kong-Macao Greater Bay Area International Auto Show in Shenzhen, southern China's Guangdong province, May 31, 2025. [Photo/Xinhua]

The country now leads the world in new energy vehicle sales and online sales market. Investment in high-tech services rose 3.5% in 2025, while investment in green energy continued its rapid growth. With a population exceeding 1.4 billion, China remains the largest market for daily necessities such as food, clothing, and housing. In 2025, China's goods imports reached 18.5 trillion yuan, cementing its position as a dynamic and promising global market, Zhou said.

Despite this strong growth, Zhou acknowledged the challenge of "strong supply but weak demand" in certain sectors, but he said that China will roll out targeted policies to tackle this issue.

Key measures include stabilizing employment and increasing income to raise purchasing power. Special campaigns will be launched to stimulate new consumption scenarios, particularly in the service sector.

In addition, China will increase investment in livelihood projects and introduce new financial instruments to attract private capital. The country will also pilot new consumption formats, models, and scenarios, while accelerating the development of a unified national market.

Notably, China will formulate and release an implementation plan this year for its strategy to expand domestic demand for the 2026-2030 period, said Wang Changlin, deputy chairman of the NDRC, at the press conference.