Who remains “frugal” after the COVID crisis? The example of China

In China, economic activity has got going again and the public health crisis appears to be fully under control. We can therefore look to China to examine who remains “frugal” once the COVID crisis is over. Who continues to hold back on spending even though the economic and public health situation has normalised? Households, and which type of spending (durable goods, housing, current consumer goods)? Companies, and also which type of spending (investment, wages, employment)? We find that after the crisis, “frugality” in China applies to: Non-durable consumer goods (in contrast, car sales are strong); Housing construction; Productive investment (whereas investment in construction and infrastructure is strong); Employment (although wages continue to rise rapidly).