What Is a Liability Driven Investment?

The growth of family wealth has driven investment and economic take-off, and economic development has continued to increase family wealth. For a certain period of time, society seems to have entered a virtuous cycle of economic growth. This growth mode can be called an investment-driven economy. China is a typical "investment-driven economy" with high savings rates, high investment rates, and low consumption rates.

Investment-driven economy

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China is a typical "investment-driven economy" with high savings rates, high investment rates, and low consumption rates. This economic model lasted for 30 years, but there was no economic crisis caused by imbalances in production and consumption. This is not a failure of economic principles, but because today's production and consumption are performed globally. Although most countries and regions in Southeast Asia are investment-driven economies, since the United States, which accounts for a quarter of the world s total GDP, is a typical consumption-driven economy, production and consumption can be balanced worldwide. . ^[2]