Chinese Government Debt Threshold Revealed: Impact on Economic Growth Unveiled
The study looked at how much debt the Chinese government can handle without harming economic growth. They created a model and used data to find that when government debt reaches about 33.3% of the economy, it starts to slow down growth. They also discovered that too much debt can stop the country from building up enough capital. The researchers suggest that the government should be careful with how much it borrows, use the money wisely, and work on reducing the debt over time.