Since 2010, debt in emerging market and developing economies has grown to record highs. Current low interest rates —which markets expect to be sustained in the medium term—appear to mitigate some of the risks associated with high debt. However, emerging market and developing economies (EMDEs) also face weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood of the current debt wave ending in crises and, if crises were to take place, to alleviate their impact.
3. Both private and public sectors have been accumulating debt
Rapid increases in debt are common among EMDEs. Between 1970 and 2009, the sector accumulating debt shifted from the public to the private sector. However, since 2010, both governments and private sectors have rapidly accumulated debt.
EMDEs in rapid debt accumulation episodes
4. Rapid debt buildup has, in the past, been associated with financial crises.
Wouldn't it make sense to look also at debt service ratio metrics in addition to debt stock ratios? With interest rates at an all-time low, debt service is likely to look less threatening that debt stock data.
This is the most important topic related to the realization of 2030 Agenda
There is data available to add capital goods investments to your charts? Would allow we visualize how much goes to speculative debt...
My country Namibia is accumulating Public Debt at alarming rate! Could you look at its debt profile and advise!
Indian Economy since Demonitisation done in November 2017 and thereafter GST trapped in the recession, which is due to lack of demand and purchasing power. To come it out Government is endeavouring to enhance credit through Banking system but no demand is there for loans. How Indian Economy can resolve the issue by not aggravating the problem further
i am not happy in your blog and publication i do not care if you publish it world widely, when it comes to reality the western countries are protected , i do not mind the high protection given to the pulled countries , what am concern right now is Africa has not benefit any fund which will lead world bank debt so mention those whom have been collecting cash from world bank, i am going to send world message on your publication.
Economic we both read .VOCATION REALISE ON AGRIC EMPOWERMENT FOUNDATION need fund for its Papal Project so visit the site www.vraef.com, kindly withdraw this angry statement of yours unless you publish those owing world bank
Ms Joyce IROKA
Hi Peter, is it possible to break down debt accumulated by SOEs in these charts?
Is it possible to indicate the level of debt incurred by SOEs in these charts?
Thank you for the article. What is your conclusion it is not clear? Do you anticipate a large debt crisis in return in EMDEs where debt is not economically productive ie did not generate investments and did not achieve higher per capita income thereby reduced consumption?
That's very good , but if we can download these charts would be great.
Yes, it is a real problem. The younger generations are expected to invest, to create jobs and be able to pay back their debts. The older generations should have savings/properties, stabile financial background as a result of their work, investments or other lifetime activities. However, this is not the case ! The Bank systems and the big service providers are suffering from the unpaid bills and the high costs of the uncollected depts.The government debts are increasing in many countries because they have to fight against the increasing costs of the health and social care taking also into account the human rights. The goverments can get authorisation to reallocate their expenditure for the favour of certain groups of the society including support, subsidies for the poorest. It is a real problem when the number of the poor people requesting social help and heathcare free of charge are rapidly increasing from outward sources (the lack of effective border control).
Looking forward to participating!
Thanks a lot for the Infographics.
What do China's figures look like? I ask, in order to draw inference regarding their way of managing the economy, especially, in the context of State control of resources.
Hi, Peter. In your article: "Why the recent debt buildup is a concern, in four charts," published 28 January 2020, the graph in #3 seems to be erroneous with private debt colored blue (more than private and government debt combined, legend showing this is the red portion). Just flagging. :) Interesting article.