China Healthcare Costs Reach 8.7% of Rural Income, Fueling High Savings
Updated
Updated · CNBC · Oct 15
China Healthcare Costs Reach 8.7% of Rural Income, Fueling High Savings
3 articles · Updated · CNBC · Oct 15
Summary
Rural Chinese households spend 8.7% of disposable income on healthcare, the IMF said, second only to the U.S. at nearly 9.9% among 20 major economies.
That burden helps explain why Chinese households save instead of spend, with urban residents devoting 5.4% of income to healthcare despite far lower incomes than in the U.S.
The IMF said targeted increases in government health and social-security spending in rural areas could significantly cut rural household savings and lift consumption.
Savings gaps also track welfare access: rural migrants working in cities save about 14%, versus roughly 6% for urban hukou holders, while falling home prices still weigh on consumption.