China’s Debt-to-GDP Ratio Falls for Fourth Straight Quarter
(Bloomberg) -- China’s total debt as a percentage of gross domestic product fell for a fourth consecutive quarter, as the government tries to strike a balance between ensuring stable economic growth and preventing financial risks.
The country’s overall leverage ratio, which measures the percentage of debt in households, non-financial enterprises and governments to total GDP, declined to 263.2% in the third quarter, according to data compiled by Bloomberg.
- Leverage ratio for non-financial sectors declined to 156.0% vs 157.8% in the previous quarter
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | |
|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | 2020 | 2019 | 2019 | |
| Real economy | 263.2% | 264.1% | 266.3% | 268.7% | 269.2% | 265.4% | 258.0% | 244.3% | 244.9% |
| Household | 62.1% | 62.0% | 62.1% | 62.2% | 61.4% | 59.7% | 57.7% | 55.8% | 55.1% |
| Non-financial corporations | 156.0% | 157.8% | 160.2% | 161.2% | 163.3% | 163.7% | 160.1% | 150.3% | 151.7% |
| Government | 45.1% | 44.4% | 44.1% | 45.3% | 44.4% | 42.1% | 40.1% | 38.1% | 38.1% |
| Financial sector | |||||||||
| Asset side | 49.2% | 51.3% | 52.8% | 54.2% | 55.6% | 57.2% | 57.7% | 54.8% | 54.7% |
| Liability side | 61.9% | 61.7% | 62.3% | 62.7% | 62.2% | 60.6% | 60.9% | 59.9% | 58.1% |
Note 1: Loans to households are consumer and operating loans.
Note 2: Loans to non-financial sector include corporate bonds, entrusted loans, trust loans, undiscounted bank acceptance bills and overseas loans, but excluding loans to local government financing vehicles.
Note 3: Data are subject to revisions.
Source: National Bureau of Statistics, People’s Bank of China, Bloomberg
©2021 Bloomberg L.P.
