Photo: Brendan McDermid / Reuters
World duty updated record to the end of the third quarter of 2019 approached 253 trillion. It is reported by CNBC, citing a report of the Institute of international Finance.
The reason for the growth in global debt experts called the increase in the number of loans around the world by States and corporations because of the low interest rates. In this regard, economists have concluded the rising default risk in the event of unforeseen situation. According to the Institute of international Finance, the debt has reached 322 percent of global GDP and continue to rise. If in the second quarter of 2019, he was 250,9 trillion dollars in the first quarter of 2020 it is expected to exceed 257 trillion.
Economists note that the negative effect on world debt has China. After the slowdown of the Chinese economy in 2017 or 2018 in 2019 the accumulation of debt accelerated. Currently, household debt and China reached 55 percent of GDP, which is also a record. China’s total debt is approaching to 310 percent of GDP, which is one of the highest among developing countries.
Previously, Moody’s Analytics the debt of the Chinese companies that roll into a wave of defaults, called the main threat to the world economy. The list of companies included in the number of state Tewoo Group and Founder Group. The total amount of defaults on loans to Chinese companies reached $ 20 billion, and the amount of debt hundreds of billions of dollars. According to analysts, the Chinese authorities cannot and will not save all of the struggling company. This, in particular, will allow them to show what happens to organizations that take up too much money.
Video, photo All from Russia.