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China consumers to overtake U.S. in a decade: Credit Suisse
Reuters
Tuesday , January 12th, 2010
Household income in China surged in the last six
years, especially for top earners, putting the country on track
to eclipse the United States as the biggest consumer market
in a decade, Credit Suisse said in a report on Tuesday.
The bank's survey of 2,700 respondents showed
a big rise in property and car purchases, underscoring why many
investors are betting big on a rise in China's consumer sector.
"The next big theme for China in the new decade is the
rise of private consumption, in our view," said Dong Tao,
China economist with Credit Suisse in Hong Kong. "It is
likely to provide a badly needed source of spending for the
rest of the world, promoting a global rebalance of trade, consumption
and growth."
Based on growth in household income and estimates of economic
growth, he expects the share of China's private consumption
to GDP to reach 23.1 percent in 2020, just surpassing the U.S.
ratio at 22.9 percent. Critics accuse China of contributing
to global economic imbalances by saving too much. However, the
amount that Chinese consumers save relative to household income
has dropped to 12 percent in 2009 from 26 percent in 2004.
Full
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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