While both the American and Chinese economies are showing signs of slowing in early 2019, China’s government is taking decisive steps to prop theirs up, while the U.S. government is introducing uncertainties such as a trade war and an ongoing government shutdown. It also helps that China’s middle class is on the rise, while in the U.S. middle-income earners have increasingly struggled for years.
All told, eMarketer finds that China’s retail sales growth overtaking the U.S. this year initiates a pattern that will hold through 2022. “In recent years, consumers in China have experienced rising incomes, catapulting millions into the new middle class,” Monica Peart, eMarketer senior forecasting director, said in a statement. “The result has been marked rise in purchasing power and average spending per person.”
