By MICHAEL BALDWINAP/APWASHINGTON (AP) China’s national debt will rise to $3.7 trillion in 2021, an increase of more than $300 billion from the previous year, according to a new study from the International Monetary Fund.
That’s the fastest growth rate in six decades.
The debt will have risen to about $5 trillion by then, according the IMF’s latest World Economic Outlook.
The study was released Tuesday, the day before President Donald Trump is expected to announce his economic plan, which will call for slashing the U.S. national debt from $19.2 trillion to $10.5 trillion.
The IMF study said China’s long-term debt to GDP ratio, which measures the debt burden of the country’s entire population, will have reached a new record high.
That’s a sharp increase from the current record of just under 6 percent.
It’s also the first time the ratio has exceeded 2 percent since 2000.
It reached 2.6 percent in 2020.
It had been 2.2 percent since 2008.
The report said the IMF expects the Chinese government will use its debt-to-GDP ratio to reduce the nation’s gross domestic product, which has fallen to about 3 percent of the world economy.
China’s gross national product (GDP) in 2021 will be nearly $1 trillion lower than it was in 2021 and about 1.3 percent of world GDP.
The government is already reducing debt by reducing interest payments, slashing spending and reducing the size of its economy.
The Chinese government is also reducing interest and capital gains taxes, the IMF said.
The United States is China’s biggest trading partner.
China and the United States share $1.4 trillion in bilateral trade and $2.2 billion in annual trade.
China has grown steadily as it has become a major global exporter, as it was an emerging market, and as it became a major buyer of U.N. arms.
China also is the world’s biggest consumer of U,S.
goods, and the world second-biggest exporter of U.,S.
products, behind only the United Kingdom.