Income in rural china on the rise Increase in income will help promote trade and possible gpw to benefit with increased trade. Take it from Bloomberg:
Bloomberg this morning regarding a shift which is occurring in China. Rural incomes in China actually rose at a faster pace than in the cities for a third straight year in 2012. Rural per capita income advanced 10.7% compared with a 9.6% increase for urban dwellers according to a report from the National Bureau of Statistics. This illustrates a shift which the Chinese government has been trying to make, spreading some of the benefits and income out to the countryside in order to try and level out income gains. I have highlighted the emergence of a 'middle class' in China, and its impact on the global economy. This latest report is good news for the global economy as gains in income are starting to reach the very poor rural areas where a vast majority of China's population still live. Spread this increase in income across the massive population in the rural areas and we should see a pickup in Chinese consumption which will benefit those countries which supply China with goods and materials. This should be good news for the commodity based currencies and those Asian neighbors which are supplying these new Chinese consumers. ,