The Global Retail Sales Picture Since 2009

If you listen to economists, you’d likely get the idea that retail sales are the most important driver of economic growth. It’s quite common to hear economist say something to the effect that over 70 percent of GDP growth stems from consumer spending. Thus, if consumers stop spending, the economy would enter a recession.

Ignoring for the moment the debate about whether retail sales is a follower or a leader in wealth creation and economic growth (it’s not, it’s a follower to productivity and investment), here’s a look at the global retail sales landscape since 2007.

Global Retail Sales Growth Since 2007

Perhaps somewhat surprising, the chart shows the massive domination of Chinese consumers when it comes to retail sales...