China's debt-to-GDP ratio climbed to a new record high in 2023 despite the slow pace of borrowing, reflecting the economy's weakening growth, a new report from a state-backed think tank shows.
The macro leverage ratio, which measures total outstanding nonfinancial debt as a share of nominal gross domestic product, rose to 287.8% in 2023, 13.5 percentage points higher than a year ago, according to a report by the National Institution for Finance and Development (NIFD).
The macro leverage ratio, which measures total outstanding nonfinancial debt as a share of nominal gross domestic product, rose to 287.8% in 2023, 13.5 percentage points higher than a year ago, according to a report by the National Institution for Finance and Development (NIFD).
In 2023, the growth of real gross domestic product (GDP) in China amounted to 5.2 percent. For 2024, the IMF expects a GDP growth rate of around 4.6 percent.
How did USA owe China so much money? The U.S. debt to China is approximately $1.059 trillion. That's 27.8 percent of the $3.8 trillion in treasury bills, notes, and bonds held by foreign countries. The rest of the $19.9 trillion national debt is owned by either the American people or by the U.S. government itself.
[2] A report by the credit rating agency S&P Global in 2022 estimated that 79 per cent of corporate debt in China was owed by SOEs (the IMF does not break down the proportion of debt owed by SOEs).
If China (or any other nation that has a trade surplus with the U.S.) stops buying U.S. Treasuries or even starts dumping its U.S. forex reserves, its trade surplus would become a trade deficit—something which no export-oriented economy would want, as they would be worse off as a result.
China owns 384,000 acres of American agricultural land. That's a 30% increase just since 2019. And on top of that, they own land near an air force base in North Dakota.
With $1.1 trillion in Treasury holdings, Japan is the largest foreign holder of U.S. debt. Japan surpassed China as the top holder in 2019 as China shed over $250 billion, or 30% of its holdings in four years.
The United States is the undisputed heavyweight when it comes to the economies of the world. America's gross domestic product in 2022 was more than 40% greater than that of China, the world No. 2. Even more striking, U.S. GDP was over five times that of the next two largest economies, Japan and Germany.
In 2023, China's national general public budget revenue reached RMB 23.4 trillion ($3.3 trillion) and expenditure grew to RMB 28.2 trillion ($4 trillion), resulting in an official deficit of RMB 4.9 trillion ($690 billion).
China's 2023 GDP reached 5.2%, in line with our forecast and consensus, much higher than 3% in 2022 when the country was grappling with the pandemic. But considering base effect, 2022-23 two-year average GDP dipped to 4.1%, off the pre-pandemic track of “higher-than-6%”.
GDP in Russia is offically estimated to be $1.760 Trillion US dollars at the end of 2023. The economy of Russia is offically reported as having a debt-to-GDP ratio of 16.9%, indicating Russia's debt level is $292 Billion.
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