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China's Macro Leverage Ratio To Rise As Debt Growth Rebounds: Yicai

CHINA PRESS
MNI (Singapore)

China’s macro leverage, or debt-to-GDP ratio rose by 4.4 percentage points to 268.2% in Q1 from the previous quarter, as debt growth recovers while economic growth is at a low level, Yicai.com reported citing a report by the National Institution for Finance & Development. The main driver was the sharp increase in the leverage ratio of non-financial enterprises, reflecting easier credit supply, the report said. The macro leverage ratio may rise by more than 10 pps in 2022 should the annual GDP fail to reach 5%, the report said. This compares to 2021 when the ratio dropped by 6.3 pps amid a steady economic recovery with the epidemic under control, Yicai said.

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