China has developed a plan to boost domestic consumption. The government intends to stimulate consumption to support domestic production, but European luxury brands could also benefit, writes laconceria.it.
The plan aims to cut spending by raising household incomes and reducing the financial burdens many families face, including cutting child care costs (to try to boost the birth rate). It plans to stabilise stock and property markets and provide payments to small businesses, encourage foreign investment and create more advertising.
The plan also aims to counteract a further slowdown in the Chinese economy caused by Trump’s tariffs. The OECD’s latest forecasts see China’s economy growing by 4,8% this year (Beijing’s target is +5%) and 4,4% in 2026.
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