Baby boomers driving force to lift China's economy
By Wang Yanlin |
February 1, 2010, Monday
|
Print Edition
Print Edition
CHINA'S carefree "baby boomers" will become the driving force to propel the country's economy as the government takes steps to shift economic growth toward domestic consumption, said Ha Jiming, chief economist at China International Capital Corp.
Ha forecast China's gross domestic product to grow 9.5 percent in 2010 due to an expected rapid jump in retail sales and a recovery in exports.
"A large population of carefree 'baby boomers' in China aged between 20 and 30 have little concerns over consumption. They have considerable consumption power because of support from their parents," Ha said during a forum on Saturday hosted by the School of Management at Fudan University.
The baby boomers, numbering around 200 million and born in the 1980s, are usually the only child in a family. Many of them have not yet become parents and are still too young to worry about lives after retirement or think that far ahead. So they are more inclined to spend, Ha said.
This generation will be the pillar to power growth in China's consumer market and will boost industries including luxury tourism, quality household appliances and high-tech telecommunications - the so-called recreational pursuits - and "investors can tap opportunities in these sectors," Ha said.
The changing demography also suggests housing prices in the country won't drop for at least five years due to demand from this generation as they will marry and need to buy a home, Ha said.
Ha also forecast the external economic climate to improve this year and China's exports may surge by 30 percent as early as March.
Ha forecast China's gross domestic product to grow 9.5 percent in 2010 due to an expected rapid jump in retail sales and a recovery in exports.
"A large population of carefree 'baby boomers' in China aged between 20 and 30 have little concerns over consumption. They have considerable consumption power because of support from their parents," Ha said during a forum on Saturday hosted by the School of Management at Fudan University.
The baby boomers, numbering around 200 million and born in the 1980s, are usually the only child in a family. Many of them have not yet become parents and are still too young to worry about lives after retirement or think that far ahead. So they are more inclined to spend, Ha said.
This generation will be the pillar to power growth in China's consumer market and will boost industries including luxury tourism, quality household appliances and high-tech telecommunications - the so-called recreational pursuits - and "investors can tap opportunities in these sectors," Ha said.
The changing demography also suggests housing prices in the country won't drop for at least five years due to demand from this generation as they will marry and need to buy a home, Ha said.
Ha also forecast the external economic climate to improve this year and China's exports may surge by 30 percent as early as March.
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