Tag Archives: Pettis On Debt

Mish/ Mike Shedlock – Pettis On Debt, Malinvestments, Hidden Losses, And China’s GDP – 26 December 2013

MishMikeShedlockHeading into 2014, Michael Pettis at China Financial Markets remains adamant that growth estimates for China are too high and that rebalancing (while necessary), implies lower growth than most expect. Via email …

It is widely acknowledged that perhaps the most important reason to change the Chinese growth model is its excessive reliance on debt to generate growth. Debt has soared in recent years, to the point where many economists simply look at credit growth in the current quarter in order to determine what GDP growth over the next few quarters are likely to be. Continue reading