Downgrade underlines fiscal risks in debt build-up

Today’s ratings downgrade reveals little that investors didn’t already know about credit growth in China and the risk that it requires the government to accept a big increase in its debt load in future. The greater concern though, we believe, should be that this debt build-up is contributing to a slowdown in China’s sustainable growth rate.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.