Rising indebtedness increases risks in China
Kaaresvirta, Juuso (13.04.2016)
JulkaisusarjaBank of Finland. Bulletin
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201604181095
The total amount of public and private debt in China has increased rapidly since the financial crisis. The country’s debt-to-GDP ratio has already reached the level seen in many advanced economies. The rapid rise in debt in many countries has led to financial sector problems and to a marked slowing of economic growth. Sustainable management of the economy in China would require a slowdown in the debt build-up. There are no indications of this as yet. Curbing debt accumulation would require China’s readiness to accept lower growth targets.