China should add a quantitative target for consumption growth as part of its long-term modernisation goals to help sustain growth momentum as the country’s population declines, a prominent Chinese economist said.

“In addition to setting a gross domestic product growth per capita target through 2035, we should also establish a target for the household final consumption rate – meaning the share of household consumption in GDP should be increased as well,” said Cai Fang, an academician at the Chinese Academy of Social Sciences.

Given projected increases in productivity, Cai said, China has the potential to reach this benchmark in the next decade, though he added the achievement will depend on demand-side factors, especially consumption.

“The demand-side constraints we’re facing now are essentially the same type of challenge as the supply-side constraints we had a decade or so ago, and they require a reform-driven spirit to tackle,” Cai said.