Summary

China’s Gen Z is increasingly focused on saving rather than spending, fueled by economic uncertainty, high youth unemployment (15.7% in late 2024), and job insecurity.

Social media platforms feature viral content on frugal living, reflecting a shift from the “moonlight generation” of free spenders.

Economists warn this trend, tied to pessimism after COVID-19 and crackdowns on private sectors, threatens domestic consumption and long-term economic growth.

Disinflation and declining mid-priced product demand are expected, as China’s GDP grew 5% in 2024 but faces slower growth ahead.