Either way, Jupiter Asian Income fund manager Jason Pidcock says such a debt level is unsustainable. “Did China escape the crisis or simply defer it? Every economy eventually has to go through a recession at some stage, and a period of high growth cannot simply transition to a period of low growth,” he says.
“A significant difference between the crisis 20 years ago and a potential one now, is that it would stem from economically very different-sized regions. A downturn of a major player like China would have vast implications for Asia and the rest of the world.”
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Taha Lokhandwala is deputy editor at Investment Adviser
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