Search ForexCrunch

According to analysts at Standard Chartered, the Chinese government is increasingly looking to consumers to sustain growth.

Key Quotes

“With return on credit-driven investment diminishing and a worsening foreign trade environment, the government recently introduced several measures to support consumption, including lowering the tax burden on low-income groups.”

“We think Chinese consumers have great potential to spend more on goods and services, and policies aimed at reducing income disparity, improving housing affordability and strengthening social security could facilitate a transition toward a consumption-led economy.”

“We expect China’s ongoing urbanisation and the rise of its middle class to drive an expansion and upgrade in consumption.”

“We forecast that China’s GDP will match the US’ by around 2030, with household consumption reaching c.70% of US’ level from just 35% in 2017.”