Are We Too Hung Up on the China Debt Pile?

Renowned economist Jim O’Neill says investors should overlook the growing debt pile in China, highlighting various positive factors for the world’s second-largest economy.”I can’t get excited about the debt issue,” Jim O’Neill, former chairman of Goldman Sachs Asset Management, told CNBC Tuesday.”Not least because in the past few months there’s evidence that the rise of debt growth has slowed pretty dramatically and indeed with nominal GDP (gross domestic product) growth accelerating, I think even some of the doom and gloom people about China would concede that the scale of the debt problem has come down a little,” O’Neill added.The credit-fueled economy has been criticized for presenting one of the greatest risks to the global economy. China wants to double the size of its economy between 2010 and 2020, even if that means growing debt in the non-financial sector.

Source: Economist Jim O’Neill on why you should stop getting scared about China’s debt pile – CNBC

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.