ECONOMY

China’s Macro Leverage Ratio Climbs Despite Household Deleveraging

Published: Oct. 29, 2025 4:30 p.m. GMT+8

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China’s macro leverage ratio rose to 302.3% in the third quarter, climbing 1.9 percentage points from the previous quarter, according to a new report from the National Institution for Finance and Development (NIFD).

The increase occurred despite a historic contraction in household debt, as slowing economic growth passively inflated the debt-to-GDP metric, which measures outstanding nonfinancial debt as a percentage of nominal GDP.

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China’s macro leverage ratio rose to 302.3% in Q3 2024, up 1.9 points from Q2, driven by sluggish nominal GDP growth of 3.7%.
Household leverage fell for the second consecutive quarter to 60.4%, with mortgage loans contracting for 10 straight quarters.
The NIFD recommends ending property purchase restrictions in top cities and creating a stability trust fund to support developers.

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