The Chinese economy is facing a downturn, and young people are feeling the impact. They are becoming more cautious with their spending due to the economic conditions. Despite a 5.3% year-on-year growth in China’s first-quarter GDP, there are forecasts of a continued slowdown, with the International Monetary Fund predicting a 4.5% growth in 2025.
One of the reasons why young people in China are hesitant to spend money is due to the tight labor market. The unemployment rate among young people aged 16 to 24 was 14.2% in May, which is significantly higher than the national average of 5%. Additionally, many young people struggle to increase their income, making it challenging for them to spend money freely.
According to experts, the disappearance of confidence and animal spirits among young people has made them reluctant to engage in revenge spending. The average monthly salary earned by undergraduates in 2023 was only 6,050 yuan ($832), showing only a slight increase from the previous year. It is believed that it will take years before the youth feel comfortable enough to increase their spending again if the market continues its booming trend.
However, despite these challenges, some Chinese youngsters have found creative ways to make ends meet during tough economic times. For instance, they have started looking for side hustles or started selling products online through e-commerce platforms like Taobao and JD.com.
In conclusion, Chinese youngsters are becoming increasingly cautious with their spending due to economic challenges such as high unemployment rates and low wages. However, with perseverance and resourcefulness, they continue to find ways to adapt and thrive during difficult times.
The total RMB deposits by households in the first quarter of 2024 saw a significant year-on-year growth of 11.8%, according to the People’s Bank of China.
Young people in China are sensing an economic downturn and choosing not to spend money as much as before.
The International Monetary Fund predicts that China’s GDP growth will continue slowing down in 2025 at an estimated rate of just over four percent.
Unemployment rates among young people aged between 16 and 24 were at around thirteen percent in May last year compared with around five percent nationwide.
