Drew Bernstein, co-founder and co-chair, Marcum Asia published an article on Forbes.com regarding China’s economy.
With Chinese Consumers Missing In Action, What’s Next For China’s Economy?
By Drew Bernstein, Co-Chairman, MarcumAsia
Heading into 2023, many economic forecasters predicted that China was primed for a tsunami of revenge spending by consumers who had been cooped up for three years under the world’s strictest COVID containment regime.
After all, China had contributed more than 20% of global luxury spending in 2021. And thrifty Chinese savers had socked away $2.6 trillion in 2022, or about one-third of their household income. Global fund managers expected that the urge to splurge would power robust growth in China’s GDP, and they bid up consumer stocks accordingly.