Bulletin – March 2010 Household Consumption Trends in China Abstract

Despite strong growth in Chinese consumption, the household consumption ratio has fallen significantly. This reflects a fall in the share of national income that accrues to the household sector and a rise in the household saving ratio. Policies to encourage the growth of small and medium-sized entities, increase social spending, and reduce the focus on investment-led growth would be expected to support the level of household consumption over the medium term.

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