Issue China's debt-financed growth model runs into limits that only consumption can relieve
Summary
MGI argues that China's supply-side strengths do not remove the limits on debt-financed government and corporate spending or on how much of its exports trading partners can absorb, and that a pivot to domestic consumption may be the only sustainable route out of long-term stagnation.
Classification
Main topicMacroeconomy & Finance
Region menusEast Asia
Impactscope:country · geo_region:east_asia · country:CN
Time horizon4-10 years (2026-07-26)
Last updated2026-07-29 04:49:52
Evidence 1
- The global balance sheet 2026: Imbalance and divergence McKinsey Global Institute page=34;section=What this means for executives 2026-07 accessed 2026-07-26
Constituent trends 1
Directly linked signals 2
Relation types: constitutes · direct_urgent
Public id: fm-a2e4c29eb750