IMF warns of historic increase in global debt
The International Monetary Fund (IMF) anticipates a storm. The organization is looking at the progress of the international economy in recent months and what may happen soon
The general director of the organization, Christine Lagarde said in a speech delivered in Washington she is concerned not only by the slowdown in the economy but by dangers that until recently seemed unreal and are now around the corner.
Lagarde warned of an inconvenience that never ceased to exist but now seems more present: the global debt, both public and private, which strikes record after record. IMF experts calculate it at 182 billion dollars, the equivalent of 156 times the Spanish GDP.
The debt does not stop growing. It already exceeds by 60% the level of 2007, a year before the great recession appeared to change the world. The figure becomes more worrying now that the period of monetary stimulus by large financial institutions seems to have come to an end.
Lagarde began her speech with positive news: the world continues to grow at the highest rate since 2011, unemployment continues to fall in most of the countries and the percentage of people living in extreme poverty has decreased. These are important events but that is not enough, because, according to the head of the IMF, “the climate of the global economy is beginning to change”.
The IMF and other institutions warn that the greatest risk is the unleashing of a commercial war. Developed economies most affected by the climate of discontent are the Eurozone and Japan, while the United States resists.
L.Sáenz
Source: El Tiempo
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