Posted 4/10/2024, 1:03:08 PM
China's Slowing Economy Causes Uncertainty for Middle Class as Consumer Spending Declines
- China's economy is slowing, with growth of just 5.2% last year compared to 7% the previous decade, causing uncertainty for the middle class
- The property crisis and declining foreign investment are also hits to consumer confidence and spending
- Chinese officials recognize the need to boost household spending but are wary of promoting "welfarism"
- Job insecurity and "reverse consumption" trends are on the rise among middle class Chinese
- All this could be a problem for the U.S. and other countries expecting a flood of Chinese exports amid weak domestic demand
