Park comments on China's budget deficit cut (Deutsche Welle)
Deutsche Welle featured Albert Park, Director of IEMS, in an article about China's debt levels. Multiple international organizations have expressed concerns about China's ballooning debt levels and warned the Asian giant could face a full-blown financial crisis should there be no action to counter the problem.
Last week, the Chinese government set a fiscal deficit target of 2.6 percent of GDP for 2018, lowering it 0.4 percentage points from the 2017 target of 3.0 percent. It marked a first cut to China's budget deficit target in six years, and is viewed by many as a sign of Beijing's willingness to tackle the debt problem. "I think it probably reflects a desire to address the problem," said Albert Park. "It is positive for growth in the long run, because it reflects a more disciplined investment environment and focus on more sustainable growth."
Read the full article here (titled "Will China's High Debt Levels Spark a Financial Crisis?" published on March 14, 2018 by Deutsche Welle).
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