China's retail sales expected to rise 12.5%

China’s retail sales expected to rise 12.5%

China's Ministry of Commerce disclosed that the country's retail sales of consumer goods are expected to increase 12.5% in 2005. This growth rate will account for 40% of the GDP (Gross Domestic Product) growth. According the Ministry forecast, the sales of automobiles and housing will increase more than 15% year on year in 2005. The catering sector is also projected to retain its strong momentum of growth this year. China's retail sales rose 13.3% year on year to RMB 1.98 trillion (around $239 billion) in the first four months of 2005, according to data from National Statistics Bureau. Furthermore, the country's retails sales reached RMB 5.4 trillion (around $652 billion) in 2004, an increase of 13.3% from a year earlier.