Morgan Stanley report predicts China's total consumption will reach 2/3 in 2020

In the afternoon of November 23, the Morgan Stanley Research Department reported that China's economy will usher in a golden period of consumption growth in the next decade, with consumption in 2020 reaching two-thirds of the US, accounting for 12% of the world's total consumption. The report predicts that China's economic growth will slow, but consumption will continue to accelerate growth and take over the baton of investment and exports to become the engine of the economy.　　The report says this is based on empirical evidence and theoretical research that suggests that China's economy is at an inflection point, and that consumption is likely to grow abnormally over the next decade after this inflection point. The report calculates that in 2020 China's total consumption will reach two-thirds of the U.S., accounting for 12% of the world's total consumption. China's new consumption overtook the US in 2008.　　The report predicts that China will reach 20% of the world's new consumption by 2020. According to the report, China's consumption of this golden decade, will have two important characteristics: first, the strong growth of consumption, and the second is a major shift in the consumption structure.　　The main factors to promote the golden Age include income growth, savings rate reduction and consumption escalation. In addition, the report notes that private consumption in China may be undervalued by 30%, meaning that private consumption may be undervalued by at least 10% per cent of GDP. (Sho Yu from Beijing)