The Chinese Academy of Social Sciences (CASS) said in a report that total debt of the central and local governments in China was at 28 trillion yuan (US$4.61 trillion) last year, equivalent to 53 percent of the year’s gross domestic product, China News Service reported Wednesday. A high level of local government debt, estimated at 19.94 trillion yuan in 2012, was of serious concern. The country’s total debt of 111.6 trillion yuan in 2012, which was the sum of the debts of non-financial and financial enterprises, private entities and government departments, was equivalent to 215 percent of the GDP that year. The figure represents a very high leveraging ratio and calls for de-leveraging measures, the CASS said.
– Contact HKEJ at [email protected]