Macro Leverage To Remain High - Expert

China’s macro leverage will rise by 8pp in the next few years if economic growth trends near 4.5% and inflation at 2%, according to Zhang Xiaojing, director at the Institute of Finance and Economics of the Chinese Academy of Social Sciences and the director of the National Finance and Development Laboratory. Zhang noted economic growth would benefit if the People’s Bank of China took a larger proportion of national debt onto its balance sheet, which would allow authorities to expand fiscal spending beyond the 3% public deficit limit, and give a strong impetus for economic recovery by stimulating private investment and market forces. (Source: Yicai)