2024-05-13 21:39:08
New Delhi: This is not good news for China, the world’s second largest economy, which is facing many challenges. According to the IMF, China’s debt-to-GDP ratio is expected to reach 200 percent by 2044. That means China’s debt burden will be double its GDP. China’s economy, which was the engine of world growth for nearly two decades, has now started slowing down. Its GDP growth was 10.6 percent in 2010, which will be 5.2 percent in 2023. Like Japan, China’s economy is also feared to be stuck in a whirlpool of recession. The IMF estimates that in the next 20 years, China’s debt-to-GDP ratio will be 50% higher than America’s. The debt-to-GDP ratio of China’s non-financial sector is expected to reach 310 percent in 2023. China’s economy has been struggling on many fronts for some time. The real estate sector of the country is in deep crisis. This sector accounts for about 30 percent of China’s GDP. Its sinking can have a wide-ranging impact on the economy. Besides, China’s condition has also worsened due to tensions with America and Western countries. The country’s stock market is one of the worst performing stock markets in the world. This is the reason why foreign companies are withdrawing their business from China. Due to severe disruption of the supply chain during the Corona period, foreign companies are trying to reduce their dependence on China. They are investing in countries like India and Vietnam. Apple is the biggest example of this which has made big investments in India. Unemployment is at its peak in China and people are busy saving money instead of spending it.
America is close to breaking the record of two decades, China’s condition is bad, India is becoming the world’s factory!
America’s debt
Meanwhile, the debt-to-GDP ratio of America, the country with the world’s largest economy, has reached 124 percent. If we look at the figures, after the year 1800, the debt-to-GDP ratio of 52 countries has been more than 130 percent. Of these, 51 countries had become defaulters. This is the reason why concern is being expressed over the rapidly increasing debt in America too. The country’s debt has reached above 34 trillion dollars. The situation has become such that this year America may have to pay more than one trillion dollars in interest. Japan ranks first in terms of highest debt-to-GDP ratio in the world. The debt-to-GDP ratio there is 269%. The European country Greece is at second place. Its debt-to-GDP ratio is 197%. It is followed by Singapore (165%) and Italy (135%). Portugal, France, Spain and Belgium are among the countries whose debt-to-GDP ratio is more than 100%. That means the debt of these countries is more than their GDP.