BELGRADE – The world has never in its history been so indebted, and IMF estimates that the total global debt amounts to 152 trillion dollars or 225 percent of global GDP.
When this is converted, it seems that almost every of 7,5 billion inhabitants of Earth owes around $20,000, writes Vecernji.hr.
At the presentation of the report on global financial stability IMF warned that this debt must be addressed before it becomes a major cause of the new global financial crisis. They also warn that the problem is not only that the debt is high, but also that it is growing fast and can’t be stopped, with two thirds of the debt going to private sector.
IMF experts believe that the debt of the private sector is the greatest danger so the states should intervene before it is too late. The bulk of the debt is concentrated in the western countries and in China, where the debt of the private sector has grown by 70 percent since 2008.
Japan’s debt relative to its GDP is 232 percent, which is the highest percentage in the world.