But the document notes that static calculations about debt fail to account for many other factors that can affect the entire picture, such as policy changes aimed at
slowing debt accumulation.
Not exact matches
China is getting richer faster now than it did before, even though it looks like wealth creation is
slowing (the difference is in the
slower required
accumulation of bad
debt).
China's
debt accumulation is «
slower than before, but if you use the West as a benchmark, it's still pretty bad,» said Zhu Ning, a Tsinghua University economist.
At the same time, demographic shifts,
debt accumulation and productivity plateaus have contributed to
slow growth, policy - driven variables that have exacerbated the headwinds.
Even so, the rate of
debt accumulation — for government, corporations and households — has materially
slowed, suggesting that the worst of deleveraging headwinds are behind us.
The reason for their frustration is Poloz's unwillingness to raise interest rates to
slow the
accumulation of household
debt, which now is about 170 per cent of disposable income.
But ultimately, China needs to find more sustainable engines of growth beyond further
debt accumulation by unproductive national and local SOEs, or accept
slower growth.