With the economy slowing, Chinese are cutting back on their lifestyle

Faced with the economic slowdown, many Chinese They are taking steps to reduce their lifestyle, cooking at home instead of eating out, saving more or limiting their vacations.

“This year, both businesses and individuals are really feeling the economic pressure”Yu Qi, a 55-year-old insurance employee, told AFP.

China’s economic growth slowed again in the second quarter of this year, with GDP increasing year-on-year by just 4.7%. A pace, announced on Monday, that other countries would only dream of.

But it is the weakest since early 2023, just after draconian Covid-19 restrictions were lifted, which weighed down economic activity. The figure is also far from the growth of more than 10% to which the country became accustomed in the period 1980-2010.

The economy is at the centre of the agenda of a high-level political meeting taking place in Beijing until Thursday, attended by President Xi Jinping.

Clothes and holidays

“Two years ago, we often went to eat hot pot.” [caldero chino] to the restaurant. But now, to save money, we cook at home,” explained Zhao Qing, a 39-year-old finance employee.

“As for clothes, I went to the department stores. Now, [compro] rather online or in small shops, to find cheaper clothes,” he said, in front of a café that is very fashionable among Beijingers.

Everything is encouraging a reduction in consumption, from the crisis in the real estate sector, to the high unemployment rate among young graduates, the difficulties in changing jobs or the many businesses that have closed their doors during the pandemic.

“We go abroad less on vacation, we give priority to destinations that are closer and with fewer days, to reduce costs,” explained Li Xiaojing, a 43-year-old office worker.

Still, it is not a question of sacrificing everything.

“The expenses we will cut last are children’s activities,” says Yu Qi.

“It’s not that bad”

However, they all claim to have put aside large expenses, such as buying a home. “We think the economy will remain stagnant for a while yet, so there is some pessimism [en el ambiente] […] Everyone tends to manage their money a little more prudently and save”Li Xiaojing stressed.

“Given the current situation, even a slight improvement does not seem possible in the short term,” said Yu Qi, who said he hoped for “a more peaceful world” and, therefore, more conducive to smooth economic transactions, in a veiled allusion to relations between Beijing and Washington.

In the long term, most were optimistic, confident in China’s innovation potential.

“When I was 20, fresh out of college, growth was amazing. So if now, for a while, it stagnates or slows down a bit, it’s not that big of a deal.”Li Xiaojing considered.

“The economy works in stages. Sometimes it prospers, sometimes it weakens. Now, we are in a rut.“Zhao Qing stressed. “But I am convinced that the situation will improve!”