The Chinese economy is facing a slowdown, and young people are feeling the impact. Despite a 5.3% year-on-year growth in China’s first-quarter GDP, forecasts predict a continued slowdown, with the International Monetary Fund predicting a 4.5% growth in 2025. One of the reasons for this reluctance to spend among Chinese youth is a tight labor market, which is particularly challenging for them. The unemployment rate among young people aged 16 to 24 was 14.2% in May, well above the national average of 5%. Additionally, there is a struggle to increase income, with many young people finding it difficult to secure higher-paying jobs.
According to experts, the disappearance of confidence and animal spirits among young people has made them hesitant to engage in revenge spending. The average monthly salary earned by undergraduates in 2023 was 6,050 yuan ($832), showing only a 1% increase from the previous year. It is believed that it will take years, if not longer, of a booming market before the youth feel comfortable enough to increase their spending. However, despite these challenges, some young people are still finding creative ways to save money and invest in their future.