 ANALYSIS OF THE CAUSES OF THE PROCESS OF CHINA’S GDP GROWTH DECLINE AND PERSPECTIVE SOLUTIONS. PART 2Peter Ondris ()
Almanach (Actual Issues in World Economics and Politics), 2019, vol. 14, issue 3, 70-82 Abstract: The goal of the second part of this study is the analysis of debt problems China is facing. It is based on the fact that economic stimulus in the form of investment into fixed assets are debt-financed. Specific emphasis is put on the analysis of home real estate debt market with purpose to evaluate the risk of banking sector crisis or of the burst of the bubble due to growing debt. The result is that the risk is in realty relatively low, because the vast majority of bad loans are corporate and not household debts, which were created between state banks and state enterprises. Therefore Chinese state controls big portion of debt, which has been used to finance economic stimulus programs. The study mentions solutions which Chinese government plans to use to guarantee sustainable economic growth (industrial strategy Made in China 2025) and to solve the demographic crisis (Concept Chinese Dream). The second part of the study ends with overall conclusion of the whole study, in which current economic stimulus programs and related risks are evaluated. Keywords: China; China’s economy; Global economic crisis; the US-China trade war; Chinese economy reforms (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:brv:almnch:v:10:y:2019:i:3:p:70-82 Access Statistics for this article More articles in Almanach (Actual Issues in World Economics and Politics) from Ekonomická univerzita, Fakulta medzinárodných vzťahov Contact information at EDIRC. |
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