Economics Current Event #1

I found my article on economictimes.com by Business Insider and it was published on September 27th, 2016. This article was entitled "Warning signs are flashing for China" In summary, this article was about how the debt levels in China are extremely low currently. The GDP (gross domestic product) gap has risen 30% which means that the debt accumulation levels may be unsustainable. The danger level China is at concerning for the rest of the world due to how important they are.

It's been seven years since the global finical crisis which was in 2007-2008 and it was considered the worst finical crisis since the Great Depression. China's economy was in trouble even before the financial crisis erupted, and the crisis only worsened these concerns. China's leading stock indices declined rapidly beginning in late 2007, lasting well over half their value by the end of 2008. China's debt is scarily high. Over the past decade, total debt grew 465 percent. The debt rose to 247 percent of gross domestic product in 2015 when it was at 160 percent in 2005. The growth in the economy is slowing down and it needs restructuring.  The credit cap is widening and has been widening for the past several years. While there are other nations are at this danger level China is in, the pace of credit growth stands considerably above the rest. China is the biggest worry for the rest of the world seeing that it has been the engine of global growth and is extremely important. Given the state of development and its place in the global economy, development is not in the near future.