China’s Share of Global Debt Tripled Since 2009: Standard Chartered
- Household debt-to-income ratio now higher than in U.S.
- Financial crisis still a low risk, Standard Chartered says
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By the end of last year China’s share of global debt had tripled since the 2009 global recession, a period in which the country unleashed a credit boom to sustain rapid growth, according to estimates by Standard Chartered Plc.
China remains one of three high-risk countries, along with Argentina and Turkey, Standard Chartered economists led by Singapore-based David Mann wrote in a 100-page report on leverage dated Friday. Steps to curb financial risks helped halt the rise of China’s total debt-to-GDP ratio -- corporate, financial, household and government -- early in 2018. The bank sees it climbing again to about 290 percent by the end of 2020, versus 270 percent as of March 31.