Wednesday, January 22, 2014
China Is The Fastest Growing Consumer Market In The World
This report from the IMF shows that consumption is growing faster in China than it is in other major economies. China has often been criticized because consumption has been a lower percent of GDP than it is most other economies. Exports and Investment spending have been the driving factors in its economy. In order for consumption to become a larger part of GDP it must grow faster than GDP. It is expected that consumption in China will grow faster than GDP as the services sector expands. Incomes will increase, and consumption will grow faster than GDP and become a larger component of GDP. Growth in services will also be good for the environment. China's manufacturing intensive economy, and its use of coal as a major source of energy, has led to poor air quality in China and it has made China the largest source of CO2 emissions in the world.