Cai Fang began the session by pointing out that promoting the development of the silver economy helps develop potential on the supply side and stimulate spending on the demand side. He then set out three effects of the silver economy:

First, the total population effect. By 2025, China will have reached a balance between birth and death rates and started to show population decline, adversely affecting consumption growth. Seniors will be a vital part of China's focus on expanding domestic demand. Second, age structure. The elderly will have lower spending power and propensity to consume. With the cost of having children and seniors' living costs rising constantly, middle aged people will tend to spend less and save more to be prepared for the crises their children and parents might face. Third, income distribution. Low-income groups increase spending as their incomes grow, whereas high-income groups save most of their income for the future.

Download the full report：Silver Economy  Tapping the Potential