Economics
China’s Debt Ratio Is Growing as Its Economy Loses Steam
- IIF report sees total debt now exceeding 300% of GDP
- Nominal growth is slowing while credit picks up again
Photographer: Kevin Lee/Bloomberg
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China’s efforts to shore up sagging economic growth are leading to a resurgence in indebtedness, underlining the challenge President Xi Jinping’s government faces in curbing financial risk.
The nation’s total stock of corporate, household and government debt now exceeds 303% of gross domestic product and makes up about 15% of all global debt, according to a report published by the Institute of International Finance. That’s up from just under 297% in the first quarter of 2018.