The next financial crisis is in the making

Thankfully, unlike the last time, we have some control over how it will play out.

Image Source: Pixabay

Global Debt load was already closer to the sky as we entered 2020 and the ongoing Coronavirus crisis is now accelerating the rate at which we were sinking under it.

According to data from the Institute of International Finance, Global debt touched an all-time high $253 trillion by the end of September 2019. That’s a mind-numbing 322% of global GDP.

“China and the U.S. accounted for over 60% of the increase. Similarly, EM (Emerging markets) debt also hit a new record of $71.4 trillion (220% of GDP). With few signs of slowdown in the pace of debt accumulation, we estimate that global debt will surpass $255 trillion this year,” the IIF reported

Image Source: Reuters

Now that governments around the world have decided to throw everything at their disposal to arrest the economic fallout of the Coronavirus pandemic, the debt to GDP profile of the world is only going to increase at an alarming rate.

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List of major announcements by countries: