Chinese bank deposits increased by 26.3 trillion Chinese yuan ($3.9 trillion) last year, according to recent data from China’s central bank, the People’s Bank of China (PBOC).
Spurred by China’s rigid COVID-19 containment strategy, which the government rolled back in December, household savings surged by 17.8 trillion yuan in 2022, growing by more than 5 trillion yuan in the last two months of the year alone.
To many Western economists and analysts, these so called excess savings represent pent-up demand that could lead to a wave of “revenge spending” this year and drive the global economic recovery. But while China is expected to experience a recovery in consumption this year, Chinese households will likely maintain a higher level of precautionary savings over the long term.