152 days ago • Posted by Martin Boujol
While China looks invulnerable, they have one weakness
Household debt ! Although the country's exports boomed, saving their economy, this progress could be wiped out by one big thorn in their side. Many urban living areas are vacant. China has to orient its investment on more productive areas to support their economic potential. The household debt to ratio is high now, standing at 59.1% for China, which is is much higher than some advanced economies such as France or Germany, and even the US. Could this become a major problem for China's incredible growth?
Source: Bank of International Settlements, EEAGLI