2007Science Technology and IndustryRequires access

The Imbalance of Investment and Consumption in China

Guo Xin-ru

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Abstract

Along with the development of the market economy,consumption has become the leading force driving economic growth.Fundamentally speaking,the investment is serving for consumption,the investment growth will not be effective without consumption growth.If signs of recovery in consumption is not the case,a sharp pick-up in investment,we will increase the supply void,increasing market pressure,lack of consumption has become more prominent.In recent years,China's economic growth was led by investment,consumption and investment imbalance,the role of consumption to economic growth weakened.

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What this paper is about

Along with the development of the market economy,consumption has become the leading force driving economic growth.Fundamentally speaking,the investment is serving for consumption,the investment growth will not be effective without consumption growth.If signs of recovery in consumption is not the case,a sharp pick-up in investment,we will increase the supply void,increasing market pressure,lack of consumption has become more prominent.In recent years,China's economic growth was led by investment,consumption and investment imbalance,the role of consumption to economic growth weakened.

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Available abstract

Along with the development of the market economy,consumption has become the leading force driving economic growth.Fundamentally speaking,the investment is serving for consumption,the investment growth will not be effective without consumption growth.If signs of recovery in consumption is not the case,a sharp pick-up in investment,we will increase the supply void,increasing market pressure,lack of consumption has become more prominent.In recent years,China's economic growth was led by investment,consumption and investment imbalance,the role of consumption to economic growth weakened.

Key concepts: Consumption (sociology), Investment (military), Economics, China, Market economy, Slow growth, Monetary economics, Social science

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