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

Are Markets Looking Overextended?

Dollar not Weak, EUR is Strong

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam