Ex­pand­ing space for ser­vice sec­tor will sus­tain eco­nomic growth

China Daily (Hong Kong) - - COMMENT -

THE ADDED VALUE of the ser­vice sec­tor in China reached 42.7 tril­lion yuan ($6.8 tril­lion) last year, ac­count­ing for 51.6 per­cent of the coun­try’s gross do­mes­tic prod­uct, 11.1 per­cent­age points higher than the sec­ondary in­dus­try. The ser­vice in­dus­try con­trib­uted 58.8 per­cent of the coun­try’s eco­nomic growth in 2106, 1.3 per­cent­age points higher than 2016, ac­cord­ing to the Na­tional Bureau of Statis­tics. Bei­jing Youth Daily com­ments:

Ser­vices are the main driv­ing force for China’s eco­nomic growth. This is an im­por­tant change that comes from the gov­ern­ment’s un­wa­ver­ing ef­forts to deepen sup­ply-side struc­tural re­form.

With the growth in for­eign trade and in­vest­ment slow­ing last year, the ser­vice sec­tor’s fast growth played a lead­ing role in the coun­try’s 6.9 per­cent GDP growth last year, higher than the an­tic­i­pated 6.5 per­cent.

It shows that the coun­try’s eco­nomic struc­ture is mov­ing to­ward the ex­pected goal, and the qual­ity of the econ­omy has been sig­nif­i­cantly im­proved.

The ser­vice sec­tor’s share in GDP is an im­por­tant cri­te­rion for judg­ing the qual­ity of a coun­try’s econ­omy, be­cause a high pro­por­tion of the ser­vice sec­tor, 70 to 80 per­cent in some de­vel­oped coun­tries such as the United States and Japan, shows

that China still has tremen­dous con­sump­tion power to tap.

If the ser­vice in­dus­try has be­come a main growth driver, it means the econ­omy has a solid foun­da­tion and strong risk re­sis­tance.

If the ser­vice in­dus­try’s growth mo­men­tum can be main­tained, the struc­ture of the econ­omy will con­tinue to be op­ti­mized, and the qual­ity of growth will fur­ther im­prove.

China’s do­mes­tic mar­ket is huge, and it can pro­vide a con­tin­u­ous source of en­doge­nous im­pe­tus to eco­nomic growth. There­fore, the gov­ern­ment needs to con­tinue to ac­tively pro­mote struc­tural sup­ply-side re­form, strengthen the in­de­pen­dent in­no­va­tion of en­ter­prises, and stim­u­late the con­sump­tion vi­tal­ity of ur­ban and ru­ral res­i­dents, to ex­pand the space for the growth of the ser­vice in­dus­try.

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