An article in the South China Morning Post about China’s public debt.
Ex-Goldman’s senior partner Fred Hu says China does not face a debt crisis in the near-term, and that fears of local government debt levels are overblown.
“For a growing economy, debt-GDP ratio is not a fixed one. It’s dynamic. Italy or Spain, why are they in trouble? It’s because their economy is shrinking and they have heavy debt. I think 60 to 65 per cent is a level that China can manage comfortably,” Hu said.
China ‘not facing a public debt crisis’
Veteran economist says debt-to-GDP ratio of 60 to 65 per cent is ‘comfortable’
