Now that life is returning to normal, hopes are high that consumers will spend with a vengeance, providing a much-needed boost to the world’s second largest economy, the impact of which would be felt around the world. Household savings at banks surged by a record high of 17.84 trillion yuan in 2022, up 80% from 2021, according to the People’s Bank of China. That’s more than one third of households’ total income. Before the pandemic, people saved about a fifth of their income.
said in January that it was “confident” and “optimistic” that China’s luxury market would bounce back this year. CEO Bernard Arnault said its stores in France are ready to welcome Chinese shoppers as more travel restrictions are eased. Burberry\n \n said last month that it’s seeing “very promising” signs in China, according to Reuters. One laggard There’s one conspicuous laggard in consumption, however. Property sales by China’s 100 largest developers dropped 32% in January, according to data compiled by China Real Estate Information, a property research firm.