China’s markets could CRASH and send shockwaves around the world, economists warn

china financial crash

The planet’s second largest economy is riddled with bad debt, where borrowing to pay the interest on previous loans has been rife, according to Freya Beamish, chief Asia economist at Pantheon Macroeconomics.

If history is any teacher, the growth rate of credit and debt in China is pointing to a very ominous outlook for the economy.

Ms Beamish said: “Historically, the rate of change of debt has been a better predictor of systemic banking crisis than any magical level over which countries cross only at their peril.”

China’s debt is an eye-watering 257 per cent of its economy, growing from around 150 per cent over the past 10 years.

 [Source”indianexpress”]