IORMA Blog : Global Consumer Spending and A Rising Middle Class – Where Are We Going to ?
According to experts, global consumer expenditure is on the rise again. Growth can be estimated at 3% in real terms (around 4,2% in current prices), up from around 2,5% in 2015, largely on account of the economic recovery in key emerging markets.
Consumer spending is defined as what households buy to fulfill everyday needs. This private consumption includes (durable and non-durable) goods (between 30 and 40%) and services, like real estate and health care (between 60 and 70%).
Consumption is shifting toward services, reflecting two trends: heavy spending on health care among aging consumers in developed regions, and increasing spending by consumers in emerging economies as their incomes rise to thresholds where consumption of services such as communications, transport, restaurants, and catering. Read the full Article here.