Shanghai, seen here with empty roads amid citywide lockdowns in April, plans to tap into its fiscal reserves amid a revenue shortfall. Photo: Bloomberg
Shanghai, seen here with empty roads amid citywide lockdowns in April, plans to tap into its fiscal reserves amid a revenue shortfall. Photo: Bloomberg

China’s debt distress among local governments seen rising in 2023, with hard-to-reach economic targets

  • Economic recovery, particularly in eastern powerhouse region that includes Shanghai, may not be sufficiently buoyed by taxes and land sales
  • A prolonged property market downturn has also affected local governments’ ability to pay off interest on debt that reached record highs this year

Shanghai, seen here with empty roads amid citywide lockdowns in April, plans to tap into its fiscal reserves amid a revenue shortfall. Photo: Bloomberg
Shanghai, seen here with empty roads amid citywide lockdowns in April, plans to tap into its fiscal reserves amid a revenue shortfall. Photo: Bloomberg
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