Hidden household income in China tops 6.2tr yuan: study
Startling result points to rampant corruption among the elite, study says
China’s hidden household income totaled 6.2 trillion yuan in 2011– accounting for 12 per cent of the country’s GDP – underlining the widespread impression corruption represents a “serious challenge” to society, a state-backed foundation’s study says.
Most of this undeclared personal or household income comes from undocumented sources and is held by a few individuals, the study says.
The institution is backed by the China Reform Foundation, an institution affiliated with the country’s principal economic planner, the National Development and Reform Commission. The analysis is based on a survey of more than 5,300 households in 18 provinces and 66 cities, Caixin says.
The study results estimated the 2012 per capita income of the richest 10 per cent of the urban population at 188,000 yuan – 3.2 times more than the official figure. The urban rich make almost 21 times more than the poorest members of society. Official figures placed the gap at 8.6 times.
The study concluded hidden income contributed to the huge gap between official figures and those generated by the survey.