Though China’s economy has ebbed and flowed remarkably this year, with expert predictions shifting endlessly, the country has managed to keep above water.
This likely has to do with China’s consumer sector, which, according to DBS analysts, offers “better resilience during the harsh times as well as fruitful returns whenever skies clear again.”
In an article discussing consumerism, ARC China’s Adam Roseman discussed why this year is a ‘year of opportunities.’
“The Chinese government favors rebalancing economic growth toward consumption. To that end, it is pursuing policies that increase the minimum wage, limit individual medical costs, accelerate urbanization with new transportation systems, and build millions of units of affordable housing,” he wrote.
“The big trend lies in the discretionaries. DBS Group sees the yuan continuing to appreciate, increasing the purchasing power of mainland consumers. High-end merchandise retailers will continue to spread into China’s provincial cities, and sustainable inflation will prompt demand for valuable assets, including gold and luxury watches. The home appliance industry will also benefit from energy savings subsidies introduced by the Chinese government in 2011.”