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China's interest costs on debt have surpassed those of the U.S. and are rising faster than any other budget category, as the government seeks to support growth. Nineteen percent of Beijing's spending is now allocated to interest on debt, compared to 14% of the U.S. federal budget. The figures were reported by Daniel Lacalle, Chief Economist and Investment Manager at Tressis Gestion.
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Lacalle has recently tracked other economic strains in global markets. He reported that Iran's economy is collapsing, marked by nearly 90% inflation and a sharp currency drop. In energy markets, he noted that oil's rebound has faded due to ample supply and reduced geopolitical risks.