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RFA: China’s Debt-to-GDP Ratio Is More Than 100%

On May 14, 2013, Radio Free Asia published an article on China’s Debt-to-GDP Ratio titled, “China’s Total Debt Is 107 Trillion; the Ratio of Debt-to-GDP Exceeds 100 Percent.” According to the agency CLSA Asia-Pacific Markets, China’s debt–to-GDP ratio will reach 245 percent by 2015. In 2012, China doubled its new debt ratio as compared to 2011. The debt-to-GDP ratio reached 110 percent in 2012 with new debt growth of 58 percent, 2.9 times more than the GDP growth.

According to Zhang Yaochang, General Manager of the CLSA Hong Kong Policy Research Department, “In fact, it requires a large amount of debt to support GDP growth. China is now addicted to borrowing. If debt levels keep growing at this rate, it will not be sustainable.”

Source: Radio Free Asia, May 14, 2013
http://www.rfa.org/mandarin/yataibaodao/jingmao/nu-05142013145422.html?searchterm=%E4%B8%AD%E5%9B%BD%E5%80%BA%E5%8A%A1%E6%80%BB%E8%A7%84%E6%A8%A1107%E4%B8%87%E4%BA%BF+%E4%B8%8EGDP%E6%AF%94%E5%B7%B2%E8%BE%BE100%25%E4%BB%A5%E4%B8%8A