China has begun gradually reducing its debt-to-GDP ratio without compromising support for the nation’s post-pandemic economic recovery, the central bank has said, reported the South China Morning Post.
The non-financial leverage ratio stood at 276.8% at the end of March, 2.6 percentage points lower than the end of December, following a fall of 1.6 percentage points in the fourth quarter, the People’s Bank of China (PBOC) said.
“As the impact of the pandemic gradually abates, the stabilization of economic growth has been matched with that of the debt level, so [we] estimate the macroeconomic leverage ratio will remain basically stable this year,” said the report’s authors Ruan Jianhong, head of the PBOC’s statistics and analysis department, and her colleague Liu Xi.
The nation’s macroeconomic leverage, usually measured as the ratio of debt to gross domestic product (GDP), is one of the most closely watched economic indicators in Beijing.
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