In the aftermath of the pandemic, young people in China are not indulging in impulsive purchases as expected. Instead, they are diligently saving as the country’s economy struggles. Despite better-than-expected GDP growth in the first quarter of 2024, forecasts indicate that economic slowdown is still likely to continue.
Christopher Beddore, deputy director of China research at Gavekal Dragonomics, believes that young people are becoming more cautious in their spending due to the overall economic climate. The shift towards saving rather than spending is evident with household deposits in RMB recording significant year-on-year growth in the first quarter of 2024.
The unemployment rate among 16- to 24-year-olds is significantly higher than the national average, further contributing to the saving trend among Chinese youth. Jia Miao, an assistant professor at NIU Shanghai, notes that many young individuals are struggling to find a job or increase their income, leading them to spend less money.
Experts predict that it may take years of economic growth before young people feel comfortable engaging in revenge spending. The loss of self-confidence and animalistic spirit among young people is a notable concern. China’s current economic challenges are fueling a shift towards saving rather than spending among young people, reflecting a cautious approach to personal finances in light of the uncertain economic climate.
In conclusion, while post-pandemic revenge spending was prevalent in many countries around the world, it seems that Chinese youth have taken a different path. They have become more focused on saving instead of spending as they navigate through difficult times for their economy and labor market. This trend highlights how financial decisions can be influenced by various factors including economic conditions and personal circumstances.