By South China Morning Post | Created at 2025-01-24 06:36:32 | Updated at 2025-01-24 09:42:13
3 hours ago
Shanghai has announced plans to issue another round of consumption vouchers, as the Chinese metropolis tries to reverse a downturn in consumer spending.
The city of 25 million people disclosed on Thursday that retail sales had fallen 3.1 per cent in 2024 – only the second time the consumption measure has declined in more than 40 years.
Retail sales in Shanghai dropped to 1.79 trillion yuan (US$246 billion) last year, driven mainly by plunging sales of everyday household goods and catering services, according to data released by the Shanghai Statistics Bureau.
Since 1978, Shanghai had only previously recorded an annual fall in retail sales on one occasion: 2022, when the city was subjected to a two-month Covid lockdown that led to a 9.1 per cent decline, according to data from Wind.
The results reflect a chronic lack of confidence among consumers amid a period of economic uncertainty in China, with households focusing on cutting their expenditure and boosting their savings.
China’s household savings rate surged to 55 per cent last year, an increase of 11.2 percentage points from 2023 and the highest level recorded since 1952, Chinese media outlet Caixin reported on Monday.
