QNB expects continued consumption growth in China

Doha: QNB predicted that private consumption in China will likely continue to rise, supported by a large accumulation of savings, increasingly consump...

Doha: QNB predicted that private consumption in China will likely continue to rise, supported by a large accumulation of savings, increasingly consumption-oriented policies, and major reforms aimed at reducing the economic uncertainty faced by households.

In its weekly report, QNB argued that the Chinese consumer is a much larger growth driver than the consensus among analysts suggests. The report noted that consumer spending in China slowed significantly in the second quarter of 2025, following a strong start to the year.

In recent months, real growth dropped to its lowest level since the beginning of the year. Despite new measures to stimulate consumption, household savings rates have remained stable, suggesting it is difficult to alter deeply ingrained habits.

Household consumption in China has long been considered the missing link in the country’s economic chain, an issue that goes beyond cyclical economic trends.

The report said that, although the government has announced efforts to shift from investment-led growth toward services and consumption, analysts and policymakers still see persistently weak consumption as an obstacle to growth, particularly in a country with 1.4 billion people and high income levels.