7 Graph 8  Prospects for rebalancing In contrast to the weakness in profits, the share of income going to labour now appears to be rising, reversing the decline seen over the past decade. 8 Accordingly, it is reasonable to expect that, over time, the composition of demand will tilt towards consumption and away from investment.
Indeed, there are tentative signs that this ‘rebalancing’ may have started in the past few years. However, Chinese consumption growth is already very strong and, historically, it has been rare for economies to experience stable and strong consumption growth during such a rebalancing.