Deleveraging Hits Consumers

Household consumption has slowed significantly in China’s economy this year, as the deleveraging effort has triggered a downturn in industrial and property sectors, and trade tensions are building. Income and employment growth are declining along with home purchases, a powerful precursor and indicator of consumer demand. Consumption will remain subdued in the short term, but it will also become more important to economic growth in the medium term.

Posted September 24, 2018
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