Q: My question is about global debt as a potential factor affecting markets going forward. According to a report in the Washington Post today global debt is now about 318 percent of world gross domestic product.
The breakdown is reported like this: Government debt has tripled from $20 trillion in 2000 to $65 trillion in 2018, rising as a share of GDP from 55 percent to 87 percent. Household debt has increased over the same years, from $17 trillion to $46 trillion (from 44 percent to 60 percent of GDP). Finally, nonfinancial corporate debt rose from $24 trillion to $73 trillion (71 percent of GDP to 92 percent).
Do you think growing global indebtedness is a serious risk factor investors should be aware of?
Link: https://www.washingtonpost.com/opinions/with-booming-global-debt-were-entering-unexplored-territory/2019/01/16/8896c5e2-19bb-11e9-88fe-f9f77a3bcb6c_story.html?utm_term=.f9c7f2e8f264
Thank you. Michael
The breakdown is reported like this: Government debt has tripled from $20 trillion in 2000 to $65 trillion in 2018, rising as a share of GDP from 55 percent to 87 percent. Household debt has increased over the same years, from $17 trillion to $46 trillion (from 44 percent to 60 percent of GDP). Finally, nonfinancial corporate debt rose from $24 trillion to $73 trillion (71 percent of GDP to 92 percent).
Do you think growing global indebtedness is a serious risk factor investors should be aware of?
Link: https://www.washingtonpost.com/opinions/with-booming-global-debt-were-entering-unexplored-territory/2019/01/16/8896c5e2-19bb-11e9-88fe-f9f77a3bcb6c_story.html?utm_term=.f9c7f2e8f264
Thank you. Michael
