Economics
China's Alarming Debt Pile Could Finally Stabilize This Year
- The leverage ratio has already peaked and will decline: Mizuho
- Analysts surveyed see debt-to-GDP unchanged at 260% this year
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Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
China’s massive debt pile may finally stabilize this year as President Xi Jinping prioritizes control of financial risks, according to economists.
Total debt will be 260 percent of gross domestic product at the end of 2018, the same as it was 12 months earlier, according to the median estimates of 21 economists surveyed by Bloomberg in March. In nominal terms, that would mean the growth in debt is slowing to roughly the same pace as the economy.