, 4 tweets, 2 min read Read on Twitter
The WSJ is reporting that China's younger generation borrows and spends -- and that is changing the nature of China's economy.

Perhaps. But, for now, the data is still driven by the older generation. China's national savings rate is way higher than the other large economies
And East Asia more generally is still a huge source of savings for the global economy. China's savings rate is down a bit, but from a very high level. It is still higher than its neighbors, so China's faster relative growth pulled the regional savings rate up (v 10ys ago)...
WSJ story is thus interesting -- but in my view it paints an incomplete picture of China's challenge. China overall still needs more consumption (and more labor income so the consumption doesn't need to be debt financed, per @michaelxpettis )

@michaelxpettis The risk to the world China poses these days doesn't stem from the rapid growth in China's internal debt. It rather comes from the fact that absent such growth in internal debt, China would return to running massive trade surpluses

Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Brad Setser
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!