China's Debt Expected to Reach $20 Trillion by 2030 Amidst Economic Challenges

Tuesday, 23 April 2024, 12:19

China's national debt is set to double by 2023, surpassing $20 trillion by 2030 at the current pace. With a projected surge in debt compared to GDP, China faces substantial challenges due to a slowdown in economic growth and struggling stock markets. Despite the accelerating debt growth, China's economic landscape poses difficulties in accurate assessment, influenced by factors like floating exchange rates.
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China's Debt Expected to Reach $20 Trillion by 2030 Amidst Economic Challenges

Chinese debt to double by 2023

China's national debt is estimated to reach $9.83 trillion in 2023, with a projected increase to $11.277 trillion in 2024, signifying a 14.72% surge from the previous year.

China's borrowing rate per trimester is forecasted to be $361.75 billion, indicating a potential debt growth to nearly $20 trillion by 2030 if the current pace persists - an unlikely scenario.

In comparison, the U.S. debt, projected to rise to $57 trillion by 2030, would increase by 67.6% at its current rate, showcasing significant differences in debt growth between the two nations.

The difficulties in assessing China's economy

Calculating China's debt figures presents challenges, compounded by floating exchange rates that can skew results. As the total debt ratio of China rose to 287.8% in the previous year, accurate economic evaluation remains complex amidst fluctuating metrics.

While concerns arise over China's escalating debt, it is vital to consider contextual factors influencing economic indicators and debt-to-GDP ratios.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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