Читать книгу The Emerging Markets Handbook - Pran Tiku - Страница 97

Data: Bloomberg, IMF Projections

Rising employee costs, land costs and currency appreciation have diminished China’s attractiveness as a FDI destination. Total FDI into China was $112 billion in 2012, 3.7% lower than 2011. Investors are looking to other relatively cheaper markets like Vietnam and Indonesia.

China’s debt-to-GDP has been rising rapidly as it has implemented its massive stimulus package post-2008. As of March 2012, China had a record $2.78 trillion of debt – this amounted to 43% of GDP. However China does not have large amounts of external debt that could spark a payments crisis and most of its debt has funded infrastructure projects, which will bring future benefits. Even so, an upward trend in the debt-to-GDP ratio is a cause of concern when it is not accompanied by a strong economic growth rate. Exhibit 5 charts China’s debt as a percentage of GDP over time.