A record $152 trillion in global debt unnerves IMF officials | Economics, Fixed Income
Slow global growth is making it difficult to pay off the obligations, “setting the stage for a vicious feedback loop in which lower growth hampers deleveraging and the debt overhang exacerbates the slowdown,” said the Washington-based fund. “Excessive private debt is a major headwind against the global recovery and a risk to financial stability,” IMF fiscal chief Vitor Gaspar said in prepared remarks. The massive debt load complicates the task for global policy makers, who have been urged to use fiscal policy to boost growth amid the waning ability of central banks to stimulate the economy. Much of the borrowing dates back to the boom in private debt that preceded the 2008 financial crisis, according to the IMF.Bloomberg
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