China posted GDP growth of 6.3% in the second quarter of 2023, badly missing expectations.
Even so, China is unlikely to unleash major stimulus measures to boost the economy because it's already in so much debt.
And while the GDP did grow year-on-year, it bears noting that the comparison is with a low base from last year when China's economy was battered by on-off COVID-19 restrictions.
"There are growing hopes for 'big bang' stimulus to fire up China's growth," Vishnu Varathan, the head of economics and strategy at Mizuho Bank, wrote in a Monday note before China's second-quarter GDP release.
The inherent risk with such high debt levels is that a default threatens a domino impact on the Chinese economy — and even the world.
Persons:
Vishnu Varathan, China's, Liu Guoqiang, Zhu Min, Robert Carnell, ING's, Carnell, Nomura
Organizations:
Service, Reuters, Mizuho Bank, Bloomberg, International Monetary Fund, Asia Pacific
Locations:
China, Wall, Silicon, Beijing, Tianjin