While China was the only major economy to post positive growth last year, it was partly because of a massive increase in corporate debt following aggressive monetary and fiscal policies aimed at fighting the coronavirus pandemic, according to economists. Photo: Xinhua While China was the only major economy to post positive growth last year, it was partly because of a massive increase in corporate debt following aggressive monetary and fiscal policies aimed at fighting the coronavirus pandemic, according to economists. Photo: Xinhua
While China was the only major economy to post positive growth last year, it was partly because of a massive increase in corporate debt following aggressive monetary and fiscal policies aimed at fighting the coronavirus pandemic, according to economists. Photo: Xinhua
China economy

China debt: highly-leveraged state firms could threaten ‘efficient growth’, private investment post-pandemic

  • Debt among state firms in China grew from 130 per cent of GDP in 2019 to a record high of more than 142 per cent last year, the Institute of International Finance says
  • Although a crisis is unlikely, China’s high debt ratio makes it challenging to shift away from an economic growth model driven by state investment and infrastructure

Topic |   China economy
While China was the only major economy to post positive growth last year, it was partly because of a massive increase in corporate debt following aggressive monetary and fiscal policies aimed at fighting the coronavirus pandemic, according to economists. Photo: Xinhua While China was the only major economy to post positive growth last year, it was partly because of a massive increase in corporate debt following aggressive monetary and fiscal policies aimed at fighting the coronavirus pandemic, according to economists. Photo: Xinhua
While China was the only major economy to post positive growth last year, it was partly because of a massive increase in corporate debt following aggressive monetary and fiscal policies aimed at fighting the coronavirus pandemic, according to economists. Photo: Xinhua
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