China entering New Year with fewer crackers, less pork, more thrift

Chinese New Year will be a thrifty one for many in China this year, as people cut on gifts, food and decorations because of the country’s economic slowdown. For many Chinese the coming year holds even less promise than 2014, when growth slowed to a 24-year-low of 7.4 per cent. A weak property market, slowing inflation and deteriorating domestic and foreign demand all point to further gloom.

We’ve seen our domestic sales drop 40 per cent and the fundamental reason has been because of China’s economic slowdown.

Ding Shen, owner of a firecracker store in China

As consumers tighten their belts, the price of pork - known as China’s indispensable meat - has also been hit. Pork prices tend to rise in the month before the holiday. But this year, according to official data, they slipped. Bookings for the Lunar New Year Eve dinner on Feb. 18 are as high as ever, but customers are opting for cheaper set menus.

Usually corporate gifts include pork products like dried meat but that has declined significantly this year.

Pan Chenjun, a senior analyst at Rabobank

Chinese New Year Asia-Pacific