The Chinese government announced measures to boost and upgrade domestic consumption in a bid to raise the quality and efficiency of its economy on Wednesday.

Consumption is an important "engine" for economic growth and represents great potential for China's development, said a statement on the central government's website following an executive meeting of the State Council presided over by Premier Li Keqiang.

"Among the driving forces for growth, consumption demand has the largest scale and the closest bearing on people's livelihood," the statement said.

The country must make full use of all market forces to raise effective supply and promote the expansion and upgrading of domestic consumption, which will in turn push forward growth of new industries and raise the economic growth to a higher level, it said.