Tuesday, August 15, 2017

IMF Warns: China's Debt On a 'Dangerous Trajectory'

"International experience suggests that China's credit growth is on a dangerous trajectory, with increasing risks of a disruptive adjustment and/or a marked growth slowdown," a new report by the IMF warns.

While the country's near-term growth outlook firmed up, it is at the cost of "further large and continuous increases in private and public debt, and thus increasing downside risks in the medium term," the report said.

China is in the late phase of a massive central bank created business cycle boom. It will not end well, not at all.


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