Balancing investment and consumption

The 13th Five-Year Plan (2016-20) has made it clear that consumption will play a "fundamental role" and investment a "key role" in China's economic growth.

Investment and consumption help maintain a country's economic growth and social stability. Consumption has been the basic driver of economic growth, while investment, determines a country's development stage and level.

In this context, developed countries' experience reveals certain development patterns. When a country's per capita GDP is comparatively low, the investment rate is correspondingly low and consumption rate high.