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World debt reaches a new record in the first half of 2018, of $ 247 trillion, most of which belongs to the non-financial sector, according to data from a report by Institute of International Finance ( IIF) and taken over by Mediafax
World debt accounts for more than 318% of global GDP. Of this total of $ 247 billion, $ 186 trillion is in the non-financial sector.
"The business sector is strongly influenced and can be very vulnerable to higher interest rates" according to Joseph LaVorgna, chief economist for the two American continents of the French bank Natixis, quoted by CNBC
] Joseph LaVorgna also said that corporate debt at such a high GDP is due to the very low interest rate
Mike Thompson, president of Standard & Poor's investment advisory service, quoted by CNBC, believes that market volatility and inflation generated by the Sino-US war also play a role. The latter may have an exaggerated effect on the assets, despite the surprising resistance of the markets up to now.
However, according to the report of the Institute of International Finance (IIR), not only US borrowers are exposed to risks but also to markets. particularly in the context of rising yields and interest rates, a phenomenon that significantly increases refinancing and repayment of dollar debt
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