6 trillion dollars .. Chinese bomb "secret" threatening the world

6 trillion dollars .. Chinese bomb "secret" threatening the world



17-10-2018 05:06 PM

Follow-up / News:

Standard & Poor's Ratings has warned of an oversized risk threatening the global economy due to clandestine Chinese practices . 

China's undeclared debt is close to six trillion dollars, raising concerns about the future of the world's second-largest economy, it said .

China kept the debt out of the official budget, so as not to be constrained by borrowing, given the high level it has reached in recent years .

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According to Business Insider, China's debt is only the visible part of the iceberg. The larger part is invisible and foreshadows a collision like the Titanic .

Standard & Poor's explains that the risk of this high level of debt is not only for China but also for the entire global economy, given the impact of Asian giants on markets .

Experts attribute the rising Chinese debt to increased spending on domestic projects, and Beijing's lack of an important margin for the contribution of local governments .

It is estimated that China's debt in the non-financial sector will reach 300 percent of the GDP of the country, while the figure would be 242 percent in 2016 .

Adding to fears in China is that the current account balance will fall this year by 1.3 percent, compared to the level recorded in 2017 .

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