Chinanews, Beijing, November 24 – According to McKinsey Global Institution, with the rapid growth of citizens' income and the decline of deposit rate, consumption in Chinese cities will increase by 500% in the next 20 years (from 3.7 trillion yuan in 2005 to 19.2 trillion yuan in 2025), making China the third largest consumer, after Japan and USA.

 

There are three factors causing family deposit rate to decline in China. First, China will become an aging society, and senior citizens are not very likely to save all their money like young people. The second factor is that with the improvement of China's social security system, the Chinese will not have to save money for medical services. The third is that there will be a better financing market in the country, providing more flexible services.

 

It can be estimated that the consumption mode of the Chinese will change, too. MGI believes the “more flexible”consumptions like transport and communications will grow by 10% every year in the next 20 years, entertainment and education will grow by 9.7% , housing and public utilities by 11.7, and medical care by 12%, the fastest of all.