The income of Chinese residents has grown strongly over the past 75 years, rising from about 50 yuan (about $7) in 1949 to 39,218 yuan ($5,561) in 2023, according to a report by the National Bureau of Statistics.
The Chinese Xinhua News Agency reported that the income of the Chinese population witnessed an average annual growth rate of 6%, which led to a huge increase of about 76 times in real terms.
“In 2020, China achieved its goal of eliminating absolute poverty nationwide, making a significant contribution to the cause of global poverty reduction,” the agency said.
According to the National Statistics Authority report, the per capita disposable income of rural residents – who were lifted out of poverty – continued to grow, rising at an annual average of 8.2%.
Population consumption has also increased, with per capita consumption spending reaching about 26,800 yuan ($3,800) in 2023, a 35.5-fold increase in real terms compared to 1956.
This comes at a time when data from the authority also showed that the unemployment rate among young people in China reached 18.8% last August, the highest level since the beginning of this year, while the country struggles to revive its deteriorating economy.
About 12 million students graduated from Chinese universities in June 2024, increasing competition in China’s job market where job seekers are already struggling, according to Agence France-Presse.
China’s industrial production growth slowed to its slowest pace in five months in August, while retail sales and new home prices continued to decline.
The long-running debt crisis in China’s key real estate sector, persistent deflationary pressures and high unemployment are among the factors currently weighing on investor confidence.
Morgan Stanley analysts warn that deflation in China poses a real risk to the economy, noting that falling wages could be one of the biggest threats.
