People in China are spending nearly as much of their income as Americans on healthcare
Increasing government spending on healthcare could help boost consumption in China, the International Monetary Fund said.
TL;DR
- High healthcare costs are a primary reason for people in China to save rather than spend.
- Rural China spends 8.7% of disposable income on healthcare, second only to the U.S.
- Urban China ranks third at 5.4%, higher than Canada.
- Per capita disposable income in the U.S. is over 10 times that of China.
- Increasing government health and social security spending in rural areas could lower savings rates.
- Declining house prices also contribute to high household savings and reduced consumption.