The IMF said debt as a proportion of gross domestic product would rise from 235% to almost 300% by 2022. “International experience suggests that China’s credit growth is on a dangerous trajectory, with increasing risks of a disruptive adjustment and/or a marked growth slowdown,” the IMF said. The main cost of this stronger growth outlook is further large increases in public and private debt. Such large increases have internationally been associated with sharp growth slowdowns and often financial crises. “The sharp growth in recent years reflects both a rise in credit to the real economy and intra-financial sector claims.

Source: The Guardian August 15, 2017 18:00 UTC