Source: AAG Insight
In a recent commentary published by the People's Daily, it was stated that China's Engel coefficient continues to decline and people's living standards continue to improve. Specifically, China's Engel coefficient has fallen from 30.1% in 2016 to 28.2% in 2019.
The Engel coefficient is an important economic indicator used internationally to measure the living standards of people in a country or region. According to the current data, China has moved into the level of "affluence" considered by international standards. This is undoubtedly one of China's major achievements during the 13th Five-Year Plan period. It reflects the country's efforts to increase Household Disposable Income and stabilize commodity prices.
According to the National Bureau of Statistics, the per capita disposable income of all Chinese residents exceeded RMB 30,000 in 2019, reaching the target set by the 13th Five-Year Plan (2016-2020) ahead of schedule. The increase in disposable income will further promote the improvement of people's living standards and purchasing power, as well as the transformation and upgrading of the consumption structure, and will also promote the development of the tertiary industry and inject vitality into China's diversified market economy.
I believe that many Chinese people can feel the change in their daily lives - they are using more and more high-tech products, they travel more often, they have a wider range of hobbies, and they now pay more attention to the quality of life and to topics related to health, wellness and beauty. All of these are the benefits of the country's economic development.
Increasingly enriched consumer demand will drive the development of related industries, further promote the growth of the national economy to form a positive cycle; it also provides the soil for foreign investment, international trade and economic globalization.
Now that the 13th Five-Year period is coming to an end, China's economic and social development is witnessed by all around the world. So, has China achieved the goal of "building a moderately prosperous society in all respects" as proposed during the 13th Five-Year Plan? In response, President Xi said that a systematic assessment and review will be conducted in the first half of next year, and then China will officially announce the completion of "a moderately prosperous" society". For the upcoming 14th Five-Year Plan, with important concepts such as promoting the high-quality industry development, domestic circulation, and domestic and international dual circulation being put forward, China will further consolidate the achievements of economic construction, optimize the structure of the national economy, and enhance China's overall strength.
With the Engel Coefficient Dropping for Eight Consecutive Years, Has China Established a "Moderately Prosperous Society”?