China is currently one of the largest countries in the world, with a population of around 1.3 billion people, and a growing middle class.  Their middle class is spending, and could potentially be the growth engine that delivers the world from its economic downturn.   

            To say that China’s middle class is expanding is an understatement. Currently, there are about 120 million of urban population in China. Of that 120 million, the richest 20% of this urban population has annual household income of about $8,000 U.S. dollars per year, and the richest 10% of this population has around $15,000 U.S. dollars or more per year.

Since the growth rates in China are so overwhelming, it means that household income is expected to increase by 100% every 5-6 years. However, we must keep in mind that China is not a developed country like the United States; so, the household income may seem low, but when it is put into perspective, the projected income increase makes all the difference. Essentially, this will have a very strong impact on the consumption power of the Chinese population.

             It definitely sounds like the increasing household income of the middle class in China, along with the increasing middle-class population are definite signs of economic growth.  They are on track, even in these tough economic times.