Chinese consumption as a share of GDP was normal in the 1980s, declined to among the lowest in the world by 2000, and collapsed to historically unprecedented levels by 2011 when China was cleaning up its banking system; since 2011 it has risen only 2-3 percentage points, and consumption would need to increase by 10-15 percentage points for China to be at a normal consumption level.
factualpending
Speaker
Michael PettisEvidence Quote
“consumption...declined from the 1980s...collapsed to levels never before seen...From 2011...increased by two or three percentage points...needs to raise the consumption share...by around 10 to 15 percentage points”
Source
Michael Pettis: China’s Consumption Crisis Is The World’s Crisis— The Monetary Matters NetworkCreated: 8/11/2026, 7:43:21 AM
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