How China's Debt Crisis Became the Reason of its Economic Downfall | Vantage with Palki Sharma

How China's Debt Crisis Became the Reason of its Economic Downfall | Vantage with Palki Sharma

China's local governments owe a whopping $13 trillion in debt, according to a report released by Goldman Sachs. Officials from debt-ridden Chinese provinces Liaoning and Hebei were in Beijing last week for a crisis meeting. They spoke to bankers and discussed ways to restructure their debts. To contain the rising debt, China has advised its local governments to scale back on infrastructure projects. Palki Sharma tells you how this situation is impacting the Chinese economy.

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China | Debt Crisis | Economic Downfall | Goldman Sachs Report | Local Governments | Firstpost | World News | Vantage | Palki Sharma

#china #debtcrisis #economicdownfall #goldmansachs #report #localgovernment #firstpost #vantageonfirstpost #palkisharma #worldnews

Vantage is a ground-breaking news, opinions, and current affairs show from Firstpost. Catering to a global audience, Vantage covers the biggest news stories from a 360-degree perspective, giving viewers a chance to assess the impact of world events through a uniquely Indian lens.

The show is anchored by Palki Sharma, Managing Editor, Firstpost.

By breaking stereotypes, Vantage aims to challenge conventional wisdom and present an alternative view on global affairs, defying the norm and opening the door to new perspectives. The show goes beyond the headlines to uncover the hidden stories – making Vantage a destination for thought-provoking ideas.

Vantage airs Monday to Friday at 9 PM IST on Firstpost across all leading platforms.
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[TheTraveler]

If you want something said, ask India
If you want something done, ask China
If you want something destroyed, ask America

[aldrintoribio]

Thats the reason they are bullying in West Philippine Sea because WPS is rich in minerals, rare earth elements, oil and gas...

[fewmomentsmore]

Debt also includes their high speed rail projects

[manikkalore]

And it's not like China can just print the dollars like US does

[thewackymonkey]

China collapsed in the 20th year of dreaming from the West, especially from the US, the EU, and India.😂😂😂

[jimbrutan_senior]

If you can talk of China's debt, what of the United States'!!!?!

[TedrosAdhanom.]

In 2022, India's national household savings rate stood at 22% of GDP. Last year, it went down drastically to 11%. Today, it's only 5.1%, the lowest level in 49 years (Chinese national household savings rate is at 47% FYI). So much so that IMF has warned India on several occasions, to no avail. Everyone knows India's economy relies heavily on consumption but at this rate, India might well be the next Greece in the making. BTW, Greeks were proud of their fastest growing economy in the EU prior to the Greek Financial Crisis of 2011

[litwania]

I believe it happens in every country's waste of money to develop things which are not needed

[waseemahmed]

I know Palki will be happy secretly inside delivering this news 😊, mee too😉

[TedrosAdhanom.]

The net financial savings of households in India has fallen to a five-decade low of just 5.1% of the GDP in FY 2023. It was 11.2% in FY 2022. This is a worrying development, because a high savings rate has traditionally correlated with a healthy growth rate. In other words, IMF cautioned that India's GDP growth is solely based on debt and is highly unsustainable. Which could lead to a Greek-styled financial crisis

[deschan.]

Palki kept saying over and over..
China slows India grows

Q: Why is China's credit rating at A+ to India's BBB- ?

[TedrosAdhanom.]

Official data from the Reserve Bank of India shows that household net financial savings fell to 5.1% of GDP in 2022-23, well below its long-run annual average of 7.0-7.5%. Indian households' net financial savings fell as much as four percentage points in the past two years as they ploughed it to build real assets such as homes and vehicles. This is exactly what happened to Greece prior to its devastating financial crisis of 2008

[TedrosAdhanom.]

According to the IMF report on the Indian economy as of Dec2023, India's public debt is mounting at an alarming rate and could breach the 100% to GDP ratio by 2025, from the present 86%, if no cuts to excessive spending by the central government continues at current rate. India is already spending a hefty 40% of its union budget, just to service its existing debt, the highest in the developing world. This could leave the Indian gov't very little room to invest on development projects, unless the cycle repeats itself, by resorting to more loans

[rondressler]

Hey $13 trillion is not too bad, the USA is $34 trillion in debt - we got them beat!

[darend]

China 13 trillon in debt for economic activity amongst 1.4 billion vs 34 trillion amongst 340 million in USA.

[smun]

Palki is sooo smart just like Gordon Chang 😂😂😂😂😂

[Indian_Girl_Aarini_]

As a proud Indian🇮🇳, I really love ♥ and have a lot of respect for the incredible work of your really interesting story on Gravitas *How British looted 45 trillion from India* which is as a masterpiece of the highest quality. Its content is truly inspiring and I thoroughly enjoy watching it. The dedication, talent and hard work poured into the video are greatly appreciated by many. The Indian Union Public Service Commission has also deliver a remarkable report titled संघ लोक सेवा आयोग *How Britishers killed 1.8 billion Indians. Chronology of British Raj's exploitative policies* | UPSC, " is equally astounding. The Indian government consistently produce insightful and thought-provoking articles of the utmost caliber. I sincerely hope they continue to produce such captivating exceptional work. Can it even get better than that? They deserve an award for best report of the year. Thank you for telling the truth.

[A_Krishna_Devotee]

India's legends: "Those who dig taps for everyone once falls in his own trap" is true. Proud to be an Indian 🇮🇳
POV: Karma never forgive anyone.
Hare Krishna🙏🙏

[SridharParepalli]

As of 2023, China owns approximately $816.3 billion in U.S. debt

[TedrosAdhanom.]

Rising debt payments are eroding the purchasing power of Indian households as the country saw its national household savings rate plunge to its lowest in half a century, at a mere 5.1% as of Dec 2023, down from 7.3% last year. This could lead to severe repercussions for the Indian economy in which domestic consumption is the main driver.

Bloomberg,
12 Jan2024