China Debt Ratio Hits Record But Pace of Borrowing Is Easing
- Total debt rose to 282% of GDP, Bloomberg estimates show
- While there’s no ‘balance-sheet recession,’ there are concerns
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China’s debt-to-GDP ratio rose to a record in the second quarter, although consumers and businesses are borrowing at a slow pace, reflecting low confidence that’s hitting economic growth.
Total debt — combining the household, corporate and government sectors — climbed to 281.5% of gross domestic product in the second quarter, according to Bloomberg’s calculations based on data from China’s central bank and the National Bureau of Statistics. That was up from 279.7% in the first quarter.