China: Still more room to increase debt to boost growth

China’s government still has room to borrow more to finance the investment and construction that’s needed to shore up economic growth, the Ministry of Finance said, according to Bloomberg. Overall risks associated with government debt, which amounted to RMB 26.66 trillion ($4.1 trillion) at the end of last year, are under control. The government can add leverage gradually because its debt ratio is still below international warning levels, it said. While concerns over China’s debt have shaken investor confidence, the ratio of government borrowings to gross domestic product is low by global standards, 39.4%, according to the finance ministry. The ratio for local governments, meanwhile, was at 89.2%.