China’s consumption rate is generally comparable to the level of consumption in the East Asian tiger economies based on figures from PWT
It is now conventional wisdom that the Chinese consume too little and save too much, and China’s reluctant consumers have contributed to the global imbalance. But the truth is that China’s consumption is grossly underestimated. China’s true rate of consumption can be 10 to 15 percentage points higher than the official figure, reaching 60-65% of GDP, a desirable rate for a fast-growing developing economy. The rich countries mired in their economic conundrum need to find domestic solutions instead of blaming China for consuming too little.
[Reprinted with permission from The China Europe International Business School.]