China released the results of a nationwide government debt audit on Monday, showing that local government debt had reached US$2.95 trillion (RMB17.9 trillion) at the end of June, up from US$1.76 trillion (RMB10.7 trillion) at the end of 2010, The Wall Street Journal reported. Total government debt was at US$4.99 trillion (RMB30.3 trillion), around 53% of GDP. More than 20% of the local government debt counted in the audit came due this year and another 40% is due in the next two years. China has ample domestic savings meaning a serious debt crisis isn’t imminent.
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