Chart of the Day: China’s Growing Household Debt
China’s household debt has built up rapidly over the past decade as its gross domestic product (GDP) has surged. The country’s household-debt-to-GDP ratio increased from 17.9% in 2008 to 49% at the end of 2017, according to the 2018 financial stability report published by the People’s Bank of China.
In the report, the central bank said that policymakers need to keep a close eye on the country’s rapidly increasing household debt. However, China’s overall household debt doesn’t stand out when compared with that of other countries.
![]() |
Graphic: Gao Baiyu/Caixin |
China’s household-debt-to-GDP stood at 49% at the end of 2017, below the international average, but higher than the average of emerging economies. The figure is less than the household-debt levels of France and Japan and way below the levels of the U.S., the U.K. and Australia.
According to the International Monetary Fund (IMF), rising household debt can boost a country’s economy, provided that it is low to begin with. However, the economic juicing power of debt diminishes as it grows as a proportion of GDP.
An economy benefits the most from rising debt when its household-debt-to-GDP ratio is under 10%, according to the IMF. When it hits 30%, it can interfere with the country’s medium-term economic growth. Above 65%, it begins to undermine financial stability.
Contact reporter Charlotte Yang (yutingyang@caixin.com)

- 1Cover Story: A Recipe for Satisfaction After Diners Express Doubts Over Pre-Cooked Meals
- 2Exclusive: China to Create Department to Tackle Trillions in Local Government Debt
- 3China Revises Maritime Law, Paving Way for Retaliation Against U.S. Fee Hikes
- 4Exclusive: Alleged Chinese Mastermind Behind Massive Bitcoin Money Laundering Stands Trial in U.K.
- 5Beijing Warns S&P Global’s China Unit Amid Push to Curb Inflated Credit Ratings
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas