Understanding local government debt in China
How can China navigate the country towards a more sustainable and balanced economic future? China's growth model, marked by excessive investment and a high savings rate, has led to the accumulation of local government debt and a skewed balance between consumption and investment.
In this episode of The Sound of Economics, Giuseppe Porcaro and Alicia García-Herrero explore this debt burden with Michael Pettis, exposing the structural problem in China’s growth model which over-relies on investment.
This episode is part of the ZhōngHuá Mundus series of The Sound of Economics.
ZhōngHuá Mundus is a newsletter by Bruegel, bringing you monthly analysis of China in the world, as seen from Europe.
Click to read all past editions of ZhōngHuá Mundus
In order to listen to the podcasts on this website, visitors will need to accept cookies. This can be done here. Alternatively, visitors can visit the website of the partner responsible for a given podcast and listen to it there.
About the speakers
Alicia Garcia Herrero
Chief Economist for Asia Pacific at Natixis, Senior Fellow at Bruegel, Non-resident Senior Follow at the East Asian Institute, Adjunct Professor at the Hong Kong University of Science and Technology
Economist specialized in monetary and financial issues in emerging markets, banking crises and resolution strategies, financial development
Giuseppe Porcaro
Head of Outreach, Governance and Human Resources, Bruegel
Michael Pettis
Professor, Peking University