#Zhou Xiaochuan Discusses Global Debt Risks#

Zhou Xiaochuan, at the "Boao Forum for Asia New Year Outlook 2025" event, pointed out that global public debt is about to exceed $100 trillion, which will increase external financing costs and currency depreciation pressure for emerging markets and developing countries, and pose challenges to the fiscal sustainability of developed countries. He also emphasized that the impact of digital encrypted assets on global financial stability and financial security needs to be guarded against.Zhou Xiaochuan believes that the world will face profound changes and challenges in 2025, including continued uncertainty in the international environment, intensified competition among major powers, setbacks in economic globalization, uncertain global economic recovery, industrial chain restructuring forced by trade and technological "decoupling and disconnection," opportunities and risks brought by the rapid development of general artificial intelligence, intensifying climate change crisis, and enormous challenges to sustainable development.He pointed out that the rapid growth of global public debt will increase external financing costs and currency depreciation pressure for emerging markets and developing countries, and pose challenges to the fiscal sustainability of developed countries. At the same time, the rapid development of digital encrypted assets has also brought new risks, especially in the absence of effective regulation, which may exacerbate systemic financial risks. Zhou Xiaochuan emphasized that countries currently need to strengthen cooperation on encrypted asset regulation globally and improve the rules governing digital currency transactions.