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Too little spending by its citizens is hitting China in the pocket
The giant economy is going through a rough patch. It can emerge stronger if its consumers save less and spend more.
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China's consumers are just not spending enough to jumpstart demand for goods at its factories.
PHOTO: EPA-EFE
Bernard Aw
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Will China grow old before it becomes rich? That did not seem to be on the cards some years back, when it was becoming wealthier by the day. But the world’s second-largest economy is now mired in a slump,
The slowdown is clear though not unexpected as the economy matures. China’s gross domestic product (GDP) galloped along at an average annual growth rate of 10 per cent between 1979 and 2008. This then moderated to around 7 per cent for a few years and is targeted to hit just 5 per cent in 2023.
