Clicky

  • Login
  • Register
  • Submit Your Content
  • Contact Us
Wednesday, August 21, 2024
World Tribune
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
Submit
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
No Result
View All Result
World Tribune
No Result
View All Result

Debt is piling up and it won’t end well for the world, economist warns

February 7, 2024
in News
Reading Time: 2 mins read
A A
Debt is piling up and it won’t end well for the world, economist warns
0
SHARES
ShareShareShareShareShare

READ ALSO

Ukraine carries out one of largest-ever drone attacks on Moscow

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says

A mosaic collection of world currencies.

FrankvandenBergh | E+ | Getty Images

The world is looking at a debt crisis that will span the next 10 years and it’s not going to end well, economist Arthur Laffer has warned, with global borrowings hitting a record of $307.4 trillion last September. 

Both high-income countries as well as emerging markets have seen a substantial rise in their debt piles, which has grown by a $100 trillion from a decade ago, fueled in part by a high interest rate environment. 

“I predict that the next 10 years will be the Decade of Debt. Debt globally is coming to a head. It will not end well,” Laffer, who is President at investment and wealth advisory Laffer Tengler Investments, told CNBC.

As a share of the global gross domestic product, debt has risen to 336%. This compares to an average debt-to-GDP ratio of 110% in 2012 for advanced economies, and 35% for emerging economies. It was 334% in the fourth quarter of 2022, according to the most recent global debt monitor report by the Institute of International Finance.

Debt is piling up and it won’t end well for the world, economist warns

To meet debt payments, it is estimated that around 100 countries will have to cut spending on critical social infrastructure including health, education and social protection.

Countries that manage to improve their fiscal situation could benefit by attracting labor, capital and investment from abroad, while those that do not could lose talent, revenue — and more, Laffer said.

“I would expect that some of the bigger countries that don’t address their debt issues will die a slow fiscal death,” Laffer said, adding that some emerging economies “could quite conceivably go bankrupt.”

Mature markets such as the U.S., U.K., Japan and France were responsible for over 80% of the debt build-up in the first half of last year. While in the case of emerging markets, China, India and Brazil saw the most pronounced increases. 

The economist warned that repaying the debt will become more of an issue as population in the developed countries continues to age and workers become more scarce.

“There are two main ways to cover this issue:  raise taxes or grow your economy faster than debt is piling up,” he said.

Laffer’s comments come on the heels of the U.S. Federal Reserve’s decision to leave rates unchanged in January, and shooting down hopes of a rate cut in March. 

Credit: Source link

ShareTweetSendSharePin
Previous Post

‘Final Fantasy 7 Rebirth adds an addictive card game and some familiar social mechanics

Next Post

Lions’ Alex Anzalone defends Dan Campbell’s fourth down calls

Related Posts

Ukraine carries out one of largest-ever drone attacks on Moscow
News

Ukraine carries out one of largest-ever drone attacks on Moscow

August 21, 2024
Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says
News

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says

August 21, 2024
Japan trade on deck, Wall Street rally pauses
News

Japan trade on deck, Wall Street rally pauses

August 21, 2024
GMC targets electric truck leadership against Tesla, Ford, Rivian
News

GMC targets electric truck leadership against Tesla, Ford, Rivian

August 21, 2024
Brits snap up lower mortgages as BOE cut boosts market
News

Brits snap up lower mortgages as BOE cut boosts market

August 20, 2024
Eli Lilly weight loss drug cuts risk of developing diabetes in trial
News

Eli Lilly weight loss drug cuts risk of developing diabetes in trial

August 20, 2024
Next Post
Lions’ Alex Anzalone defends Dan Campbell’s fourth down calls

Lions' Alex Anzalone defends Dan Campbell's fourth down calls

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What's New Here!

Google apologizes over its Pixel influencer demands

Google apologizes over its Pixel influencer demands

August 19, 2024
On Olympic stage, Kevin Durant is the best ever: Jim Boeheim

On Olympic stage, Kevin Durant is the best ever: Jim Boeheim

August 8, 2024
Amex is using Olivia Rodrigo concerts to tap Gen Zers in Europe

Amex is using Olivia Rodrigo concerts to tap Gen Zers in Europe

August 19, 2024
Brewers’ Christian Yelich to undergo season-ending back surgery

Brewers’ Christian Yelich to undergo season-ending back surgery

August 16, 2024
Levi Jung-Ruivivar’s run at 2024 Olympics nearly ends with health scare

Levi Jung-Ruivivar’s run at 2024 Olympics nearly ends with health scare

July 26, 2024
Aaron Rodgers’ epic family feud revealed — and it wasn’t all Olivia Munn’s fault 

Aaron Rodgers’ epic family feud revealed — and it wasn’t all Olivia Munn’s fault 

August 13, 2024
The Google TV Streamer is a replacement for the Chromecast line

The Google TV Streamer is a replacement for the Chromecast line

August 6, 2024

About

World Tribune is an online news portal that shares the latest news on world, business, health, tech, sports, and related topics.

Follow us

Recent Posts

  • Ukraine carries out one of largest-ever drone attacks on Moscow
  • Yankees’ DJ LeMahieu in another rut as porous season continues
  • Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says
  • The EU wants no corner of the digital sphere left untouched, warning X and AI could be next

Newslatter

Loading
  • Submit Your Content
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2024 World Tribune - All Rights Reserved!

No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food

© 2024 World Tribune - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In