The Institute of International Finance (IIF) Global Debt Monitor 2017 report shows that growth in global debt has slowed over the past several years, particularly in mature economies. However, Emerging Market economies borrowing more heavily, global debt has set a new record high of USD217 trillion (over 327% of GDP) in early 2017.
The IIF report highlighted “rollover” risks, especially in emerging markets that have borrowed in hard currencies such as euros and dollars. Such debts will become costlier to service if Western interest rates rise and currencies strengthen.
China accounted for $2 trillion of this rise, with its debt now at almost $33 trillion.
Umm, $33 Trillion? Is that why China started complaining when UN Ambassador Nick Haley “lightly intimated” that those helping North Korea might have a consequence along with the Norks? Our debt is $20T against a GDP of $17T; China’s is $33T against a GDP of about $10T.
Who is in the least worst shape and if the US were to slap China with sanctions, who is going to get hurt worse?
(H/T: The Next Big Future)
