China’s Future Economic Growth: A Look Into High Savings Rates

Abstract

After many years of rapid economic growth, China is finally seeing signs of slowdown. In the past decade Chinese households have saved a large percentage of their income,
however the growing middle class consumers will begin to demand more services. Increased spending will be necessary for China to shift from a low income to a middle-income
economy. However, in order for this transition to be successful the government must first set up policies that will create an adequate financial environment.