Chinese youth are spending less and trying to save as much as they can. They are spending less on movie outings, cars and houses. China is now facing a contracting economy, and lesser jobs and the youths are also facing serious pay cuts.
Many Chinese social media influencers are now sharing tips to reduce expenses. Many posts are educating the youth to live frugally and save more money. According to the report conducted by Reuters, Chinese youths who are 20 to 30 years old are spending less as the country is doing bad in the economic parameters.
Chinese youth are spending less and saving more
The managing director of China Market Research Group said that consumer behaviours show a serious concern. Young consumers are spending the least in 16 years. There is a record high unemployment rate among people aged between 16 to 24. The unemployment rate among this age group is 20 per cent. Furthermore, the average salary in major Chinese cities dropped drastically.
The Reuters report indicates that 60 per cent of the Chinese are inclined to save more. 3 years ago, the number is 45 per cent. There is a sharp rise in savings accounts, from 6.4 trillion yuan last year to 10.8 trillion years in the first 8 months this year.
To address the issue, China cut interest rates to incentivise the public to spend and invest. Furthermore, the state-owned banks cut personal deposit rates to boost consumption. More policies are introduced to discourage the Chinese from saving more and to encourage the Chinese youth to spend more.
