Spend, spend, spend raises global debt to precarious levels
China’s role as an important creditor complicates tackling the vast borrowing triggered by COVID-19. "In the wake of COVID-19 health and economic concerns, the debt-to-GDP ratio in the UK and US has surged to over 100 per cent, which is set to drag on future economic growth. In the UK, at the beginning of 2020, UK households had borrowed roughly £1.7tn — almost as much as the government. And every class of debt in the US — government, household, credit card, auto loans and student loans — has surged to over $1tn each, and almost 20 per cent of US companies are seen as zombies." Global economist and author, Dambisa Moyo, contemplates the issues in this opinion piece for the Financial Times.
From Financial Times