China’s Engel's coefficient has been declining in the past five years, with the number standing at 30.1 percent in 2016, which is close to the wealthy life standard set by the UN.

According to statistics from the National Bureau of Statistics (NBS), the country’s Engel’s coefficient in 2016 stood at 30.1%, down by 2.9% over 2012, while the average disposable income of Chinese citizens increased by an annual average of 7.4% since 2012 to 23,821 RMB.

The UN Food and Agriculture Organization uses the coefficient to describe how difficult it is for people to acquire the basic needs of life. A coefficient between 50 to 59 percent indicates that people can barely meet their daily needs, while a number below 30 percent represents a wealthy life.

The decline of the coefficient has been hailed by many experts and media outlets, who believe that more disposable income can lead to the country’s consumption upgrade and diversified economy.

The People’s Daily on Oct. 12 published a commentary in which it noted that China’s Engel coefficient had lingered at 50 percent for a long time, while the current 30.1 percents shows that Chinese can now invest more on traveling, healthcare services, and entertainment. The improvement shows China’s remarkable achievement in income distribution and poverty alleviation.

The proportions of expenses on transportation and communication, education, culture and recreation, and health care and medical services to the consumption expenditure increased by 2.0%, 0.7%, and 1.3%, respectively, as compared with those in 2012, according to NBS.