Large debts equivalent to GDP
The situation is so bad that the debt mountain is equivalent to almost the entire global GDP, according to the head of the World Economic Forum Borg Prendi Which compares the situation to what it was more than 200 years ago.
“We haven't seen this kind of debt since the Napoleonic Wars,” Brindi said Sunday at a World Economic Forum conference in Saudi Arabia.
“We are approaching 100% of global GDP in debt.”
Some calculations show that Britain's debt in 1815 amounted to 200% of GDP. The matter is still far from the International Monetary Fund figures, which indicated at the end of 2022 that global debt reached $91 trillion, or 92 percent of GDP.
Debt has fallen somewhat since the pandemic years and global growth currently stands at 3.2 percent. However, it is a decline from growth that previously reached 4 percent for several decades, Luck writes.
Open trade
according to Borg Prendi There is a relatively simple way to return to previous growth numbers, which is to get rid of trade wars.
“Trade has been the engine of growth for decades.”
It's advice that the United States, whose debt now stands at $34 trillion, or 99% of GDP, should probably take seriously.
The country's debt outlook is not pretty at all, as the debt in 2054 could reach up to 166% of GDP according to calculations.
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