Surge in govt savings to weigh on growth

Rate of expansion higher than the increase in GDP, says top economist

The high level of government savings deposits could prove detrimental to long-term economic growth, even as concerns mount over ballooning local government debt in China, a report said on Wednesday.

Total bank deposits held by government agencies and public institutions reached 18.3 trillion yuan ($2.99 trillion) by the end of September and accounted for 30 percent of total GDP, Liang Hong, chief economist of the investment bank at China International Capital Corp Ltd, wrote in the report.