BLOOMBERG: China’s Debt-to-GDP Ratio Rises to Record 279.7% on Credit Boom

[ziaulislam]

US household debt is 15.24 Trillion USD. So the total US debt to GDP ratio is 200%.

China's LGFV's * are not included by Bloomberg if you add 7 trillion USD worth of LGFV's China's total debt to GBP ratio is well over 300%.

so no USA figures are not "much higher"

*LGFV's are loans made by banks to local governments

He already posted figures look at them.
USA total debt is higher then China total debt.

That figure includes loans taken by private businesses if you include those numbers for China's then China's ratio will be well over 1000% points.

The 279 includes that.
Without that China debt is much lower less then 70%

 

[beijingwalker]

Debt to GDP Ratio by Country 2023 - Wisevoter

The debt to GDP ratio is a measure that compares a country’s total debt to its gross domestic product (GDP). It provides an indication of a nation’s ability to repay its debts relative to the size of its economy. The debt to GDP ratio can serve as a metric for evaluating a country’s fiscal...

wisevoter.com

 

[xuxu1457]

That figure includes loans taken by private businesses if you include those numbers for China's then China's ratio will be well over 1000% points.

say some thing, can give solid data to compare

 

[Mista]

This is the media, using all China's debt (including family, enterprises, government, etc.), compared with government debt in other countries
Japan Government debt accounted for 225.9 % of the country's Nominal GDP in Dec 2022
Japan Total Debt accounted for 1,316.5 % of the country's GDP in 2022
SO.........
View attachment 928268
while US
United States Total Debt accounted for 764.7 % of the country's GDP in 2022
so only debt of China is a problem

France Total Debt accounted for 991.9 % of the country's GDP in 2022, compared with the ratio of 994.2 % in the previous quarter. See the table below for more data.

LAST	PREVIOUS	MIN	MAX	UNIT	FREQUENCY	RANGE
991.9 Sep 2022	994.2 Jun 2022	494.7Mar 1996	1,054.6Mar 2021	%	quarterly	Mar 1996 - Sep 2022

United States Total Debt accounted for 764.7 % of the country's GDP in 2022, compared with the ratio of 772.1 % in the previous quarter. See the table below for more data.

LAST	PREVIOUS	MIN	MAX	UNIT	FREQUENCY	RANGE
764.7 Dec 2022	772.1 Sep 2022	304.2 Jun 1953	848.9 Mar 2021	%	quarterly	Dec 1951 - Dec 2022

happy? or worry 279.7% of CHina

country	total Debt/GDP (%)
Luxembourg (%)	7,469.20
Cyprus (%)	1,399.30
Japan (%)	1,316.50
Malta (%)	1,255.20
Ireland (%)	1,121.80
Switzerland (%)	1,056.30
United Kingdom (%)	1,035.20
Netherlands (%)	1,002.90
France (%)	991.9
Denmark (%)	953.1
Canada (%)	927.1
Taiwan (%)	888.4
European Union (%)	807.3
Sweden (%)	780.9
Iceland (%)	766.2
United States (%)	764.7
South Korea (%)	757
Belgium (%)	733.6
Finland (%)	663.6
Germany (%)	651.8
Italy (%)	644.8
New Zealand (%)	634.4
Greece (%)	617.8
Portugal (%)	560.8
Austria (%)	558
Norway (%)	509.3
Slovakia (%)	476.4
Croatia (%)	460.3
Hungary (%)	445.7
Bulgaria (%)	385.6
Czech Republic (%)	382.5
Estonia (%)	362
North Macedonia (%)	352.6
Slovenia (%)	337.4
Turkey (%)	322.7
Latvia (%)	317.8
Ukraine (%)	298.1
Poland (%)	296.2
Lithuania (%)	292.7
China(%)	279.7
Australia (%)	264
Romania (%)	246
Mexico (%)	110.5

click country to see detail

The figure you cited from Ceicdata also includes state/local government, nonprofit organizations as well financial corporate liabilities. Which is not a fair comparison because the debt picture in OP excludes the above. So it's not an apple to apple comparison.

CEIC calculates quarterly Total Debt as % of Nominal GDP from quarterly Total Debt and quarterly de-annualized Nominal GDP. Total Debt is calculated as sum of Liabilities for NonFinancial Business, Federal Government, State and Local Government, Households & Nonprofit Organizations and Financial Business less Mutual Fund Shares.

US Total Debt: % of GDP, 1951 – 2024 | CEIC Data

US Total Debt accounted for 735.9 % of the country's GDP in 2024, compared with the ratio of 737.1 % in the previous quarter.

www.ceicdata.com

OP's metric:

Financial corporations are usually excluded because a deposit (whether by individual or entity) in a bank is considered a liability in the bank's balance sheet, and thus including financial corporations' debt will skew the debt picture.

Here's a better total debt comparison by the IMF:

https://www.imf.org/-/media/Files/Conferences/2022/12/2022-12-12-global-debt-monitor.ashx

Total debt (public plus non-financial private debt) as a % of GDP in 2021
US: 287.2%
China: 265.1%

say some thing, can give solid data to compare

See above.

 

[dbc]

He already posted figures look at them.
USA total debt is higher then China total debt.


The 279 includes that.
Without that China debt is much lower less then 70%

no it does not. For the rest see post above from @Mista

The data doesn’t include bank loans to local government financing vehicles.

When you add BRI as I said earlier Chinese debt to GDP is over 300%.

What is China’s current debt level?​

The Institute of International Finance (IIF) estimated that China’s total domestic debt rose to 335 per cent of gross domestic product (GDP) in 2020.

How big is China's debt and who owns it?

China has increased its effort to reduce its domestic debt to curb financial risks, but its total debt is reported to have hit 335 per cent of gross domestic product (GDP) in 2020.

www.scmp.com

 

[beijingwalker]

 

[Zsari]

What are the implications? I mean the news should at least tell what all of this data means?

It means economic vibrancy as companies are borrowing as they expand. Chinese has a massive saving rate, and all that money in the bank without lending them out will bankrupt banks as deposits incur interests. Already, there are too many deposits in the banks.

Chinese bank deposits exceed loans by $6.5tn as caution prevails​

As long as external debt and government debt are kept relatively low, increase in private lending is a good sign.

 

[Song Hong]

Many morons pretend to be economist.

Debt is not dangerous, high debt level vs GDP is very dangerous in most cases -- but not in all cases.

US federal debt to GDP hit 120% during WW2, and US economy is the best that time.

So what is the secret?

Your high debt vs GDP must occur under the condition of huge production expansion. Production inherently is deflationary, and to balance the deflation, you can print print print....etc

Then you wipe off your debt.

But today US public debt vs GDP is dangerous because US is de-industrializing.

 

[zhxy]

But today US public debt vs GDP is dangerous because US is de-industrializing.

It is the biggest mistake of developed countries.

For short-term gain, they decided to move their factories to third world countries, even hostile countries, resulting in a lack of knowledge and skills among their citizens. . They became dependent on foreign nations. When they are happy to buy goods at cheaper prices, they have lost the big picture.

 

[Song Hong]

It is the biggest mistake of developed countries.

For short-term gain, they decided to move their factories to third world countries, even hostile countries, resulting in a lack of knowledge and skills among their citizens. . They became dependent on foreign nations. When they are happy to buy goods at cheaper prices, they have lost the big picture.

The western nations now want to maintain peasant cogitation at low level. They are very afraid if peasant found out Marx.

Their fix is to mass import engineers from India and China and at the same time poisoning their peasant with sex, drugs, LGBT, feminism...etc

These days such internal contradiction and self destructive force is so high that even mass import foreign talent no longer works.

Their days are numbered.

 

[nahtanbob]

with passage of time China will hit other developed countries on debt

 

[Song Hong]

with passage of time China will hit other developed countries on debt

Singapore has one of highest debt to GDP ratio but it is NOT dangerous because all the creditors are citizen and debt is in the form of force savings.

GoS plunders the citizen by selling them a house 5000 USD per sqm, 99 years lease. Then GoS debt is wipe off.

If creditors are citizen, there is many policy lever to loot, and citizen not even aware.