China: High Household Savings Thwarting Consumerism Efforts

January 22nd, 2011
in econ_news

great wall Econintersect:  One of the strategies that China could pursue to reduce global trade imbalances would be to increase domestic consumption.  The high household savings rate in China is a strong countering force to such efforts.

Follow up:

A research paper by Marcos Chamon, Kai Liu and Eswar Prasaud analyzes the savings rates in China and find that, combining households, enterprises and government, the savings rate in China exceeds 50% of GDP.  This is up from about 36% ten years ago.

Household savings is not growing as rapidly since 2007, but is maintaining a level about 20% of GDP.  Since GDP has been rising rapidly the absolute amount of household savings in China is still increasing.

Source:  GEI Analysis.    









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved