Asia's rapid accumulation of debt in recent years is holding back central banks from easing monetary policy to fight the risk of deflation, endangering private investment needed to boost faltering growth, according to Morgan Stanley.
Debt to gross domestic product ratio in the region excluding Japan rose to 203 per cent in 2013 from 147 per cent in 2007, with most of the increase coming from companies, analysts led by Chetan Ahya in Hong Kong wrote in a report on Tuesday. The ratio is close to or has exceeded 200 per cent in seven of 10 nations including China and South Korea, they said.
Debt to gross domestic product ratio in the region excluding Japan rose to 203 per cent in 2013 from 147 per cent in 2007, with most of the increase coming from companies, analysts led by Chetan Ahya in Hong Kong wrote in a report on Tuesday. The ratio is close to or has exceeded 200 per cent in seven of 10 nations including China and South Korea, they said.