China's Q1 Economic Growth at 5%, But People Hardly Feel It; Experts Urge Faster Policy Rollout
Despite China's Q1 GDP growing by 5%, real disposable income only grew by 4%. Experts are urging the government to accelerate income-boosting policies to stimulate domestic consumption.
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- 📰 Published: April 23, 2026 at 12:36
- 🔍 Collected: April 23, 2026 at 13:01 (25 min after Published)
- 🤖 AI Analyzed: April 23, 2026 at 16:35 (3h 34m after Collected)
Central News
(CNA Reporter Li Ya-wen, Shanghai, 23rd) China's first-quarter economic growth rate reached 5%; however, the growth rate of real per capita disposable income was only 4%. Experts believe that the pace of economic growth is out of sync with residents' income growth, making the rollout of an urban and rural residents' income-boosting plan urgent, and the government should accelerate its introduction.
Data from the National Bureau of Statistics of China shows that the first-quarter economic growth rate was 5%; the national per capita disposable income of residents in the first quarter was 12,782 RMB (about 58,000 NTD), a nominal growth of 4.9% compared to the same period last year, and after deducting price factors, an actual growth of 4%. The public's "felt experience" of economic growth remains weak.
A report by Yicai gathered opinions from multiple experts. Zhang Jun, Chief Economist at China Galaxy Securities, stated that current resident income growth and economic recovery are out of sync. While middle- and low-income groups have a higher propensity to consume, the improvement in income is slow, and the desire for precautionary savings remains strong.
Zhang Jun believes that the policy orientation of the urban and rural residents' income-boosting plan has gradually upgraded to a medium-term institutional arrangement aimed at expanding the middle-income group and strengthening the endogenous driving force of domestic demand. Besides focusing on protecting the labor remuneration rights of groups like migrant workers and gig workers, it must also improve the social security system, alleviate the financial pressure of education, medical care, and elderly care, and release consumption potential.
Huang Qunhui, a researcher at the Institute of Economics of the Chinese Academy of Social Sciences, suggested that the government should roll out the urban and rural residents' income-boosting plan as early as possible, which would have a positive effect on promoting domestic consumption. The core of people's consumption behavior depends on expected income; introducing an income-boosting plan will help improve future income expectations and thus boost consumption.
The outline of the "15th Five-Year Plan" (2026-2030) proposes formulating and implementing an urban and rural residents' income-boosting plan. The Chinese government's work report this year explicitly mentioned formulating and implementing such a plan, rolling out practical measures to promote income growth for low-income groups, increase property income for residents, and improve compensation and social security systems.
Huang Yanfen, a professor at the School of Public Administration at Renmin University of China, stated that the future implementation of the income-boosting plan should revolve around key areas such as expanding employment, broadening channels, strengthening guarantees, focusing on priorities, and integrating consumption, to build a multi-dimensional and comprehensive long-term mechanism for income growth, ensuring policy goals are effectively met.
Xiao Hongwei, Director of the Policy Simulation Laboratory at the Economic Forecasting Department of the State Information Center under the NDRC, analyzed that promoting resident income growth is a foundational project for expanding domestic demand. It is necessary to stabilize and expand employment, increase wage income, enhance support for micro, small, and medium enterprises and labor-intensive industries, expand employment space in new business formats, and strengthen vocational skills training, allowing workers to shift to high-value-added jobs to achieve "wage increases through skills." (Editor: Chou Hui-ying) 1150423
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(CNA Reporter Li Ya-wen, Shanghai, 23rd) China's first-quarter economic growth rate reached 5%; however, the growth rate of real per capita disposable income was only 4%. Experts believe that the pace of economic growth is out of sync with residents' income growth, making the rollout of an urban and rural residents' income-boosting plan urgent, and the government should accelerate its introduction.
Data from the National Bureau of Statistics of China shows that the first-quarter economic growth rate was 5%; the national per capita disposable income of residents in the first quarter was 12,782 RMB (about 58,000 NTD), a nominal growth of 4.9% compared to the same period last year, and after deducting price factors, an actual growth of 4%. The public's "felt experience" of economic growth remains weak.
A report by Yicai gathered opinions from multiple experts. Zhang Jun, Chief Economist at China Galaxy Securities, stated that current resident income growth and economic recovery are out of sync. While middle- and low-income groups have a higher propensity to consume, the improvement in income is slow, and the desire for precautionary savings remains strong.
Zhang Jun believes that the policy orientation of the urban and rural residents' income-boosting plan has gradually upgraded to a medium-term institutional arrangement aimed at expanding the middle-income group and strengthening the endogenous driving force of domestic demand. Besides focusing on protecting the labor remuneration rights of groups like migrant workers and gig workers, it must also improve the social security system, alleviate the financial pressure of education, medical care, and elderly care, and release consumption potential.
Huang Qunhui, a researcher at the Institute of Economics of the Chinese Academy of Social Sciences, suggested that the government should roll out the urban and rural residents' income-boosting plan as early as possible, which would have a positive effect on promoting domestic consumption. The core of people's consumption behavior depends on expected income; introducing an income-boosting plan will help improve future income expectations and thus boost consumption.
The outline of the "15th Five-Year Plan" (2026-2030) proposes formulating and implementing an urban and rural residents' income-boosting plan. The Chinese government's work report this year explicitly mentioned formulating and implementing such a plan, rolling out practical measures to promote income growth for low-income groups, increase property income for residents, and improve compensation and social security systems.
Huang Yanfen, a professor at the School of Public Administration at Renmin University of China, stated that the future implementation of the income-boosting plan should revolve around key areas such as expanding employment, broadening channels, strengthening guarantees, focusing on priorities, and integrating consumption, to build a multi-dimensional and comprehensive long-term mechanism for income growth, ensuring policy goals are effectively met.
Xiao Hongwei, Director of the Policy Simulation Laboratory at the Economic Forecasting Department of the State Information Center under the NDRC, analyzed that promoting resident income growth is a foundational project for expanding domestic demand. It is necessary to stabilize and expand employment, increase wage income, enhance support for micro, small, and medium enterprises and labor-intensive industries, expand employment space in new business formats, and strengthen vocational skills training, allowing workers to shift to high-value-added jobs to achieve "wage increases through skills." (Editor: Chou Hui-ying) 1150423
Choose to stand with the facts. Every sponsorship from you is a force to protect press freedom.
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The text, images, and audio-video on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.