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China’s Economic Divide Between North and South Set to Widen

  • Nomura sees rising debt defaults, slower growth in north
  • Regional GDP data show disparity in pandemic recovery
People gather around a lake at a park in Beijing.

People gather around a lake at a park in Beijing.

Photographer: Yan Cong/Bloomberg
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The economic divide between China’s prospering southern regions and lagging northern areas will continue to widen in coming years, with huge implications for growth, debt and policy making, according to Nomura Holdings Inc.