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Consumption in sentence

2633 examples of Consumption in a sentence

The Global Economy’s New Rule-MakerMILAN – In a recent commentary for the South China Morning Post, Helen Wong, HSBC’s chief executive for Greater China, shows that China’s rising generation of 400 million young consumers will soon account for more than half of the country’s domestic consumption.
It has a very large domestic market – to which it can control access – rising incomes, and high aggregate demand; and its growth model is increasingly based on domestic consumption and investment, and less on exports.
Interest-rate cuts can boost borrowing – and thus spending on investment and consumption.
Pensioners and those near retirement, facing low income from interest, may cut back further on consumption, weakening the economy.
This rise in financial inclusion is welcome news, not least because, in the event of a downward income shock, a household’s consumption will fall much less if it is linked to the formal financial sector.
But they thought that by providing rock-bottom interest rates and generous liquidity conditions in the wake of the 2008 global financial crisis, they could push investment and consumption upward.
Why does the purchase of body parts give rise to international condemnation, while the purchase of agricultural land does not – even when it involves evicting local landholders and producing food for export to rich countries instead of for local consumption?
The International Monetary Fund stressed the same conclusion in its recent Article IV consultation with China, noting that labor income is now expanding as a share of GDP, and that consumption contributed slightly more than investment to GDP growth in 2014.
The country’s longstanding growth model, based on investment and exports, is to be replaced by one based on services and domestic consumption.
Yes, the contribution of domestic consumption to GDP has risen slightly over the last few years.
But that mainly reflects weak investment demand, not strong consumption growth.
Indeed, one key factor impeding consumption is the imperative faced by China’s older workers to save for retirement.
In this sense, the main imbalance that China must address is not between consumption and investment, but between households on one hand and the government and corporations on the other.
Clearly, the Chinese government hoped that positive wealth effects from rising asset prices would stimulate consumption.
Now, the aftershocks may cause consumption to decline even more.
None of this is to say that China’s quest for higher domestic consumption is destined to fail.
When they become the main agents of the Chinese economy – that is, when they reach middle age – China’s consumption landscape may be completely different, with the country acting as a global buyer, rather than a global seller.
When it comes to economic rebalancing, China will need to be patient, recognizing that the current generation is simply too fixated on saving to provide the kind of surge in consumption that is needed.
They have the added benefit of generating what the economist Amar Bhidé calls venturesome consumption: demand-led entrepreneurship and innovation.
This is especially regrettable because R&D in green energy technologies is really the only viable long-term strategy for reducing fossil-fuel consumption without crippling the world economy.
Where would consumption come from?
Unemployment resulting from automation in the Chinese manufacturing sector could ultimately complicate China’s efforts to rebalance its economy toward increased domestic consumption – an objective that most economists agree is critical for the country’s long-term prosperity.
But when one considers today’s advanced-country malaise – years of stagnating or declining wages for average workers, growing income inequality, increasing productivity, and consumption supported by debt rather than income – there certainly seems to be ample reason to speculate.
In Japan, the policy uncertainty concerns whether the third arrow of Abenomics – structural reforms and trade liberalization to boost potential growth – will be implemented, and whether the expected rise in the consumption tax in 2014 will choke economic recovery.
Also, high oil prices have taken a toll on disposable income, impeding growth in consumption demand.
In response, they cut consumption and save more, expecting that sooner or later they will have to start paying for some of the services they had been used to getting free or at subsidized rates.
Some timid measures have been implemented, but the general feeling among Germans is best described by the following answer to a survey conducted two months ago by the newspaper Die Welt : “47% of those interviewed plan to cut consumption due to the uncertainty about pensions and health reform.”
For two years now, the growth rate of private consumption (measured at constant prices) has been negative: - 1% in 2002, -0.5% in 2003.
Similar declines in real consumption are rare in industrial countries, as in bad years consumers typically draw on their savings to keep their consumption relatively constant.
In the case of Germany, one has to go back to the early 1980’s to see similar negative numbers in consumption growth.
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