China's debt grows, and growth slows

Chinese growth has slowed again towards the end of 2013, while local government debt has soared.

Chinese growth slowed again towards the end of 2013. The latest survey of manufacturing activity pointed to a broad slowdown in December. New orders and export orders declined. An index tracking services slid to its lowest level since August 2011.

Meanwhile, the National Audit Office reported that local government debt had jumped by 70% to 18trn yuan ($3 trn) in the past three years. Throw in central government debt and overall state debt is now worth around 55% of GDP.

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