Customers select gold accessories in Caibai, one of best-known gold retailers in Beijing, China, May 2, 2013. (Xinhua/Li Xin)
BEIJING, Nov. 20 (Xinhua) -- China's consumers are expected to spend up to 6.4 trillion U.S. dollars a year by 2025, a 70 percent increase from the 3.7 trillion dollars spent last year, according to a study by think tank Demand Institute.
China's deep pockets are not only growing in scale but also contributing much to the economy, as the country shifts from an export-led economy toward one driven by higher consumption.
The Asian economic giant will keep its place as the second-largest consumer market in the world, after the United States.
Gold accessories are on sale in Caibai, one of best-known gold retailers in Beijing, China, May 2, 2013. (Xinhua/Li Xin)
Overall, consumption growth over the next decade is estimated at an annual rate of 5.2 percent, as wages rise and the Chinese become more aspirational in their spending despite overall economic growth slowdown.
People queue to enter a shopping center in Hong Kong, south China, Nov. 13, 2015. (Xinhua/Ng Wing Kin)
According to the report, even if overall GDP growth slows by as much as one percent going forward, consumption would still grow by 4 percent -- which will keep Chinese economy on track.
By 2025, consumption is estimated to account for nearly 42 percent of total GDP, up from the current 37 percent.
People swarm in a shopping center in Hong Kong, south China, Nov. 13, 2015.(Xinhua/Ng Wing Kin)
The consumption growth will mostly stay where it has long been -- in China's major cities, such as Beijing, Shanghai and Guangzhou. But smaller cities are quickly catching up.
The kind of people who will drive consumption growth are those who can already afford basic necessities and are finding themselves with some spare cash. They're also more likely to be well-educated and living in urban areas.