25 October 2023, 5:57 pm 1 minute
Reuters exclusively reported China’s cabinet has restricted the ability of local governments in 12 heavily indebted regions to take on new debt and placed limits on what new state-funded projects they can launch.
Local government debt loads are far higher than at the central government level. While central government debt is only 21% OF GDP, local debt reached 92 trillion yuan ($12.58 trillion), or 76% of the country’s economic output in 2022, up from 62.2% in 2019. The massive piles of debt highlights local governments’ financial stress, fueling concerns of a systemic financial crisis.
Topics of Interest: Government
Type: Reuters Best
Sectors: Economy & PolicyGovernment & Public Services
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Significant National Story