China income expenditure 中国收入及消费能力研究报告.pdf

China Income Expenditure Euromonitor International 12 June 2008 China currently has the second biggest economy in the world after the United States and as the most populous country in the world has the largest potential consumer market. Incomes continue to grow and savings remain high. Although expenditure growth slipped a bit in 2007, the 2008 Summer Olympics held in Beijing are expected to give consumer spending a boost. Income inequality continues to rise particularly between rural and urban dwellers. The richest segments of the population are growing rapidly and demand for luxury goods is swelling. Planners will find the highest incomes and biggest spenders in urban centres and in the coastal provinces. 1. INCOME, EXPENDITURE AND SAVINGS Income Still Growing and Savings Remains High Per capita gross income has grown on average by 10.9% in real annual terms between 2002 and 2007, whilst disposable income has averaged 10.6% growth to reach US$1,450 and US$1,326 respectively in 2007. Growth in annual consumer expenditure has lagged a bit behind disposable income growth, averaging 7.8% growth in real terms over the same time period to reach US$882 per capita in 2007. This is a sharp contrast to the previous 5-year period where average annual per capita expenditure was growing faster than both gross and disposable income. Between 2006 and 2007 there was a marked slowdown in consumer expenditure growth while income growth remained relatively similar. It is unclear if this is an indication of a longer-term downward trend in consumer spending; however, the 2008 Summer Olympics in Beijing are likely to give expenditure a short-term boost. The gap between disposable income and expenditure has remained roughly the same over the past five years and is not showing any specific trend. However the gap between disposable and gross income is increasing slightly. Whereas disposable income was 92.6% of gross income in 2002, it was 91.4%