China’s debt-fuelled economy

China has been financing its rapid economic growth with growing debt. Since 2001 China’s debt pile has more than doubled to over 300% of GDP as Beijing boosts infrastructure spending


China’s debt-to-GDP ratio (% of gross domestic product)

Financial sector	Government	Household	Non-financial corporate	U.S. ratio

2001: GDP of $1.34 trillion* – debt stands at $1.94 trillion, 145% of GDP

2004-08: Gross debt is stable at 170-180% of GDP

2008-09: Financial crisis

Post-financial crisis: Government and state-owned companies borrow heavily to build infrastructure

2019, Q1: Debt hits $40 trillion, 303% of GDP

U.S. debt: All-time high of $22.8 trillion, 106% of GDP

300
250					43%
200					51%
150					54%
100					155%
50 
0
	01 03 05 07 09 11 13 15 17 19


2002-12: President Hu Jintao presides over decade of consistent economic growth – GDP reaches $8.28 trillion in 2012

2013: Xi Jinping becomes president. Made in China 25 plan aims to turn China into global leader in 10 core industries by 2025


*$1 trillion equals $1,000,000,000,000


Sources: Bloomberg, Institute of International Finance, Mercator Institute for China Studies
Pictures: Associated Press
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