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China cannot afford the Silk Road, and that is a blessing

27.04.2019

Gabriel Felbermayr thinks that the boom in Chinese foreign investment has passed its peak

Excerpt from the Article

(...) China's current account surplus has essentially vanished. The International Monetary Fund thinks it will be 0.5 per cent of GDP this year. It will then go progressively negative through the early 2020s. Gabriel Felbermayr, head of Germany's Kiel Institute for the World Economy, says the overseas lending boom is already fading. "The source from which China is financing its international investments is drying up," he said. Total Belt and Road investments since 2013 amount to around $US600 billion. They peaked in 2017 and fell 40 per cent last year.

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