FT: China’s Working Population to Account for 12% of Global Spending

FT: China’s Working Population to Account for 12% of Global Spending
Apr 06, 2016 By eChinacities.com

China’s working age population will account for 12% of global consumption by 2030, Financial Times reported on Monday. McKinsey Global Institute recently reported that China’s working population’s consumption will increase from $2.5 trillion in 2015 to $6.7 trillion in 2030.

“These consumers are now reaching income thresholds at which spending on services takes off rapidly,” said McKinsey GI. By 2030, the Chinese working population will account for 12 cents of every dollar spent worldwide. They will have as much of an impact on the global economy as the West’s Baby Boomer generation did in its heyday.

Despite China’s history of a one-child policy, McKinsey predicts that the number of Chinese people aged 15 to 59 will increase from 521 million to 628 million by 2030. The rising income of Chinese workers will also have an impact. The percentage of Chinese families earning $2,100 a month is expected to increase from 4% in 2010 to 54% in 2030.

McKinsey predicts that per capita spending in urban areas by China’s working population will increase at a compound annual growth rate of 5.4%, which means that per capita spending would increase from $4,800 in 2016 to $10,700 in 2030.

In comparison, McKinsey estimates that per capita consumption in North America amongst working-age people will increase from $39,000 in 2015 to $48,000 in 2030, with those over 60 spending $49,000.

Source: inews.qq.com

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Keywords: McKinsey McKinsey Global Institute China consumption

1 Comments

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RandomGuy

I'm sorry to disappoint you but China is about to stall and so will wages. Only a fool and a wumao would believe the government statistics. When Japan stalled, average yearly Japanese income was USD43000, as of now, average Chinese income is USD7000 per year. BTW, the middle class represents 2% of China's working population, others barely make enough to meet ends, and that's when they get paid at all. Any attempt to get unpaid salaries from corrupt employers is met with riot police or tanks. So much for that new consumer society.

Apr 07, 2016 07:47 Report Abuse