Consumer Credits and Economic Growth in China

Abstract

Consumption played a relatively less important role historically in China’s economic growth, which has been primarily driven by exports. As the Chinese government tries to stimulate domestic demand for economic growth outlined in the Third Plenary Session of the Eighteenth Communist Party of China (CPC) Central Committee, consumer credits have become increasingly important as China’s export-led growth slows down. This article describes the status of consumer credit and presents an empirical analysis of the relationship between consumer credit and economic growth.

Keywords:

• consumer credit
• domestic demand
• economic growth
• financial institutions

Notes

See the Asian Blue Book (2010), published by Morgan Stanley.

See the information at the website of the People’s Bank of China, www.pbc.gov.cn.

See the Yearbook of the National Statistics Bureau.

See China Credit Card Report in 2011.

The National Statistics Bureau provides more information about its publication.