China Warning: Economy Set for Financial MELTDOWN Amid Soaring Debt Levels
- China Warning: Economy Set for Financial MELTDOWN Amid Soaring Debt Levels
by LANA CLEMENTS, http://www.express.co.uk/
CHINA is on course for a full-scale financial meltdown that could cause havoc across the globe, suggest early warning indicators tracked by the world’s central bank watchdog.
The seeds have been sowed for potential financial distress in the world’s second-largest economy, according to the Bank for International Settlements(BIS).
Soaring credit growth relative to China’s GDP is a huge cause for concern that could result in financial overheating and distress, warned the organisation – thought of as the central bank of the world’s central banks.
Any score above 10 is a worry but China’s gap is measured at a huge 30.1 – higher than even the US before the financial crisis. By comparison the debt-laden countries of Greece and Italy score -13.2 and -13.7 respectively. The measure stands at -27.0 in Britain.