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.”
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