context: ‘Stimulating domestic demand’ is mentioned frequently in media following the recent Politburo directive to combine economic restructuring with expansion of domestic demand. Though originally published by Economic Information Daily, this piece has been widely discussed since it was reposted by Xinhua. Some analysts have questioned its tone, noting that people are suffering because of public services shortage, while the piece seems to only consider them consumers. It’s difficult to determine who in the leadership holds the views expressed here, but it is clear that a conversation has commenced.
Inelastic demand for elderly care, education and healthcare has soared, creating a new triad for economic development. Incentive policies will lead to high quality products and services, says Economic Information Daily.
The traditional elderly care model—wherein family members take major responsibility—is unsustainable when a single couple has care for four to six elders. The population above 60 years old was estimated at 241 million in 2017, with some 40 million disabled, leaving many families under enormous pressure. Already, growing middle-income consumers are showing a strong preference for professional elderly care services, says Zhao Baoquan 赵宝泉 Happy Maturity director.
Parents of millennials already invest heavily in their children's education, and that commitment is expected to grow. The education industry attracted $13 bn in 2017, doubling that in 2016, notes Liu Chunliang 刘良春 Datong Education Group chairman. National Bureau of Statistics Economic Climate Monitoring Centre shows that urban families' expenditures on education have seen 20 percent y-o-y increases for the past few years.
'Healthy China 2030' predicts a C¥16 tn healthcare industry in 2030, Economic Information Daily notes—a considerable jump from the C¥4.9 tn in 2017. The expectation is that growth will accelerate as the population ages, the rate of urbanisation climbs, and health insurance coverage expands.