Credit Suisse report: China becomes the world's first consumer market in 10 years

Credit Suisse reports that Chinese households ' incomes have risen sharply over the past six years and that the trend can be sustained. According to the latest report by Credit Suisse, the income of Chinese households has risen significantly in the past 6 years, and this trend will continue.　　　　China is expected to overtake the US as the world's largest consumer market by 2020.　　Chinese consumption will provide a source of income for countries reports show that 2700 of people surveyed have reported a sharp rise in spending in China's auto and real estate sector in 2009, explaining why so many investors are investing in the Chinese consumer market. "For China, the hot topic for the next 10 years is the rise in private consumption," he said. "China's consumption is expected to provide the rest of the world with desperately needed funds to promote global trade balance, consumption and economic growth," said Tao, an economic analyst at Credit Suisse Hong Kong.　　"According to the growth of household income and the expected growth of the economy, Tao hopes that China's private consumption capacity can account for 23.1% of gross domestic product, which will exceed the 22.9% per cent rate in the United States." Some critics point out that China's excessive savings can lead to global economic imbalances.　　In any case, the Chinese household savings rate fell from 26% in 2004 to 12% in 2009.　　The widening of the income gap may have an impact on society although the average household income has increased a bit, the most affluent people in the economic environment are among the richest.　　The survey shows that the income gap is far greater than official figures, and that the development trend of this gap may have an impact on society over a long period of time. For example, the survey data showed that incomes of the 20% households with the lowest income rose by an average of 50% from 2004 onwards.　　However, the top 10% per cent of household income rose by as much as 255%.　　High-income consumers will make more money in equities and property, and the gap between the rich and the poor will be pulled up. The survey also showed that first-time buyers also became a powerful force supporting China's real estate industry, with the number of first-time homebuyers rising from 23% in 2006 to 36% in 2009.