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China’s Total Debt Climbs Higher in Q1 2019

According to data released by the Institute of International Finance (IIF), China’s total corporate, household and government debt has soared to over 300% of its GDP in Q1 2019. During Q1 2018, this figure stood at 297%.

Amid rising trade tensions, the Chinese government has rolled out several stimulus measures to get its economy back on track. However, these latest figures suggest that they haven’t been of much help so far.

The report states that Beijing’s efforts to impose restrictions on shadow bank lending have reduced non-financial corporate debt, but net borrowing in other sectors has continued to climb higher. As a result, China’s total debt now stands at over $40 trillion and account for around 15% of the total global debt.

China’s GDP growth slowed down to 6.2% in Q2 2019, the slowest pace in 27 years amid weakening demand both globally as well as in domestic sectors. The government has been trying to promote lending by banks to increase investment and maintain employment levels, in addition to rolling out tax cuts and increasing spending on infrastructure.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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