China’s Debt to Climb to Record in 2022, Government Adviser Says
- Temporary increase in debt ratio not too risky: NIFD’s Zhang
- ‘Little possibility’ of household leverage decline, Zhang says
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China’s debt will likely hit a record this year as the central bank tries to boost credit and shore up the struggling economy, according to a government-backed think tank.
The overall leverage ratio -- total debt as a percentage of gross domestic product -- is projected to increase by 11.3 percentage points to around 275% this year, according to Zhang Xiaojing, director of the National Institution for Finance and Development. He attributed the rise mostly to the slowdown in economic growth.