Honor Your Debts

Summary

The publication of world debt data, compiled by the Institute of International Finance (IIF) from various sources, estimates that debt increased again in the second quarter of 2019, reaching 320% of GDP worldwide.

Key points

• Key points:
• This is not unexpected given the economic situation, which favors minimal interest rates, in general, for different degrees of risk due to a lack of inflationary pressure, and growth that has been greatly restricted by standards enforced in recent decades.
• Debt will not rise indefinitely. There will be deleveraging. In fact, it is already happening in economies and sectors where financing costs are increasing and income is deteriorating.

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