Part 6/9:
Despite official rhetoric emphasizing the need to boost household consumption, there remain significant hurdles to overcome. While policy-makers tout strategies aimed at increasing consumer spending by addressing local government debt, the impact of such initiatives may be limited.
With ongoing household deleveraging and weakened consumer confidence largely due to a stagnant labor market, growth in household consumption is expected to remain subdued, likely falling between 3.5% to 4.5% which will contribute an estimated 1.5 to 2 percentage points to GDP.