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China’s debt position unsustainable

22 Jul 2014 12:00 AM | Anonymous

According to results from Standard Chartered Bank, China’s debt to GDP is now 251% - effectively its debt is 2.5 times the size of its economy. This signals a rapid increase over the last 6 years. Although the ratio is higher in the US (260%), UK (277%) and Japan (415%), China’s ratio is very high for an emerging market. Continuation along these lines - slowing growth and increasing debt –is sparking concerns over potential future financial turmoil for the country.

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