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International Center / Full Report
The per capita saving rate and the debt / GDP ratio are one of the important indicators for measuring the country’s economic standard of living. China’s current savings rate has dropped to its lowest level in history, from 50% in the past to 45% now. There are even 560 million people without bank deposits. Furthermore, the debt-to-GDP ratio of Chinese residents has gone from nearly zero in the past to nearly ten. Over the years it has grown rapidly and the per capita debt is nearly 130,000 RMB and has gone from a big savings country to a “big debt country”.
▲ Lu Media reported that China’s savings rate has dropped significantly, with 560 million people without deposits in banks. (Picture shows Chinese leader Xi Jinping / photo date)
Chinese media “Sohu.com” previously reported that China has changed from a “big savings country” to a “big debt country” for four main reasons:
First, wages cannot keep up with rising prices: people have not only reduced their ability to save money, but they also have a lot of debt.In the event of rising prices, many households’ income and expenses offset each other, there is no extra money to be deposited in the bank, and some purchase goods are even paid in installments. It is not surprising that the debt / GDP ratio increases.
Second, since the commercialization of the Chinese real estate market, house prices have been like a wild horse that has risen tenfold or even dozens of times in 20 years.To buy a home, people have to take money from the bank to pay the down payment, resulting in a lower savings rate. Due to high house prices, over 95% of people cannot buy it all at once. You can only buy a house with bank loans for 20-30 years. Therefore, since 2015, residents have to borrow from banks to buy homes and their debt-to-GDP ratio has also increased significantly.
▲ China’s per capita debt is nearly RMB 130,000, and it has gone from a big savings country to a “big debt country”. (Image / Provided by AP authorization)
Third, many residents buy cars in addition to buying houses.Even if buying a car costs only a few 100,000 yuan or 200,000 yuan, the price is not too high compared to the price of the house. However, a car over 100,000 yuan must be paid back in 24 months within 2 years.This is for normal families. That said, the pressure is great too. In fact, in addition to buying a car with installment loans, the maintenance and annual maintenance of the car is also a big expense. It is naturally difficult for the working class to save money.
Fourth, the rise in China’s debt-to-GDP ratio is also correlated with improving youth consumption prospects。Statistics show that the per capita debt of the group born after 1990 (after the 1990s) is 127,000 yuan and must be paid with 18 months’ salary. At the same time, 1 in 4 people born in the 1990s who are in debt use Ant Group Huabei’s microfinance mechanism, and 2 in 3 people who buy a mobile phone prefer to use installment payments, which shows that young people born in the 90’s have a better consumption concept They tend to European and American countries, prefer to enjoy life and pursue the quality of life.
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