Market news
19.07.2019, 07:19

China's rising household debt likely to weigh on growth - Fitch

Chinese households' rising debt servicing costs could weigh on the medium-term economic growth, Fitch Ratings said in a report.

The rating agency noted that household debt had increased rapidly, to 85% of disposable income by the end of 2018. Although debt servicing costs do not pose near-term risks to financial stability, it will weigh on growth prospects in the medium-term.

Fitch estimated that household debt rose to around 53%of GDP last year, driven by mortgage borrowing.

China's household debt-to-disposable income ratio was lower than most developed markets. But the Fitch observed that the gap will narrow rapidly, with the ratio rising to close to 100% at the end of this decade if growth rates remain unchecked.

Earlier the Fitch had raised China's growth outlook to 6.2% this year. However, the projection for 2020 was lowered to 6%.

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location