Absa AgriTrends 2023 Autumn Edition

through government transfers to support economic recovery. The Chinese population might therefore be more reluctant to spend hard-earned savings as opposed to the “easy money” that was given out in the West. Data from a recent quarterly survey done by the People’s Bank of China seems to support this notion and showed that 22.8% of respondents indicated that they will increase their spending as opposed to 58% who noted that they would like to save more in the near future.

Lockdown-induced household savings in China

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Gap between actual and trend savings in China in 2022

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3 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: World Bank and Own Calculations

The Chinese population might therefore be more reluctant to spend hard-earned savings

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