Beijing Reforms Could Lift China Consumer Sectors, ETFs | Page 2 of 2 | ETF Trends

According to The Demand Institute, if the Chinese economy expanded 7%, the most likely scenario, consumption share of GDP could remain at about 28% between 2015 and 2025, accounting for 330 trillion yuan, or $53 trillion.

If growth slowed to 4%, consumption could hit 46% of GDP output by 2025, or an annual spending increase of 126%, to 420 trillion yuan, or $68 trillion.

The think tank argues that the economy will also enjoy a good boost from Chinese consumers since consumption can take off from a relatively low base. From 2011, consumption in China made up 28% of real GDP, compared to 76% in the U.S., 67% in Brazil, 60% in Japan, 59% in Germany and 52% in India.

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Max Chen contributed to this article.