% of GDP is left scale.
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Source: Business Insider |
Wall Street Journal |
Due to a request by the Economist this graph has been removed.
The Economist says: So, is there a problem here? I'd say yes and no..
- The chart (above) indicates one reason why current debt levels aren't too frightening; they're not much higher than they have been across a period in which the Chinese economy grew extremely rapidly...
- China's debt load is also less problematic than rich-world burdens because its trend growth rate is so high...
- China also needn't fear foreign creditors...
- And then, of course, China has those $3 trillion in reserves. So any way you slice it, debt payments are unlikely to place much stress on the Chinese economy...
- But that's not to say that debts aren't a problem. I think a near-term economic crisis within China is unlikely. But I also think that many of the economic policy choices that make China's debt less of a near-term threat are likely to seriously complicate growth 5 or 10 years down the road.
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