IS CHINA’S DEBT MUCH WORSE THAN WE THOUGHT?
In its latest country focus, the International Monetary Fund (IMF) upgraded the growth outlook for Asia’s largest economy to an average of 6.4 percent a year through to 2021, compared to 6 percent previously.
Could this be Pollyannic? Because the IMF said the faster pace of growth would come at the cost of increased debt.
China’s total non-financial sector debt, including corporate, government and household debt, is expected to reach almost 300 percent of gross domestic product (GDP) by 2022, up from 242 percent in 2016, as Beijing strives to achieve its goal of doubling 2010 real GDP by 2020.
That’s according to the IMF – and it could be far worse than that. Analysts such as Charlene Chu are saying that
the real bad debt figure in China is up to $6.8 trillion more than official estimates. And everyone knows not to trust China’s official estimates.











