China’s nearly 60 percent of households prefer to save
China is known for its high savings rate, and a recent survey has revealed that nearly 60 percent of households in the country prefer to save their money rather than spend it. The survey, conducted by the People’s Bank of China, found that the average savings rate in the country was 38.5 percent in 2020, up from 36.1 percent in 2019.
The survey also found that the main reason for saving was to prepare for emergencies, with 70 percent of respondents citing this as their primary motivation. Other reasons included saving for retirement (54 percent), buying a house (47 percent), and education expenses (38 percent).
The high savings rate in China is partly due to the country’s cultural values, which place a strong emphasis on saving for the future. In addition, the lack of a comprehensive social safety net means that many Chinese people feel the need to save in order to protect themselves and their families in case of unexpected events.
However, the high savings rate also has some negative consequences. It can lead to a lack of consumer spending, which can in turn slow down economic growth. In addition, it can contribute to income inequality, as those who are able to save more are often those who are already wealthy.
To address these issues, the Chinese government has been taking steps to encourage more consumer spending. For example, it has introduced policies to boost domestic consumption, such as tax cuts and subsidies for certain products. It has also been promoting the development of e-commerce and other online platforms to make it easier for people to shop and spend money.
Despite these efforts, it is likely that China’s high savings rate will continue for the foreseeable future. As the country’s population ages and the cost of healthcare and other expenses rises, many people will feel the need to save even more in order to prepare for the future.
In conclusion, China’s high savings rate is a reflection of the country’s cultural values and the lack of a comprehensive social safety net. While it has some negative consequences, the government is taking steps to encourage more consumer spending. However, it is likely that the high savings rate will continue for the foreseeable future, as people seek to prepare for emergencies and other future expenses.
