BEIJING, March 5 (Reuters) - China’s ratio of outstanding liabilities to gross domestic product fell in 2018 after rising in previous years, a sign of initial success in the government’s deleveraging drive, a vice central bank governor said on Tuesday.
China’s macro leverage ratio dropped 1.5 percentage points last year, Chen Yulu, vice governor at the People’s Bank of China (PBOC), told reporters at a briefing on the sidelines of the country’s annual meeting of parliament.
The central bank said previously that China’s overall leverage ratio would continue to stabilize due to the government’s supply-side reforms, tighter regulations, and a prudent and neutral monetary policy.
The macro leverage ratio hit 250.3 percent in 2017.
China’s liabilities had soared during previous years, with the macro leverage ratio up 13.5 percentage points each year from 2012 to 2016. (Reporting by Yawen Chen and Ryan Woo; Editing by Richard Borsuk)