IMF warns about global debt as it reach to $226 trillion.
Global debt hit $226 trillion last year, its biggest one-year jump since World War II, putting it at risk if global interest rates rise faster than expected and growth declines, the International Monetary Fund said on Wednesday...
Yayınlanma: 15 Aralık 2021 22:42
Güncellenme: 20 Kasım 2024 04:23
IMF officials said in a blog post that the COVID-19 pandemic has caused debt to reach 256 percent of global GDP, up from 28 percent in 2020. Government debt accounted for just over half of the $28 trillion increase, but private debt among non-financial companies and households also reached new highs.
Developed economies and China accounted for 90% of the debt growth driven by low interest rates. The IMF said debt has grown less in other developing countries, which are often hampered by higher borrowing costs and limited access to finance.
IMF Chief Financial Officer Vitor Gaspar and other officials said higher interest rates would dampen the impact of increased fiscal spending and intensify debt sustainability concerns.
"The risks will increase if global interest rates rise faster than expected and growth stalls," the officials said.
"Substantial tightening in financial conditions will increase the pressure on the most indebted governments, households, and firms. Growth prospects will suffer if the public and private sectors are forced to remove debt at the same time."
