Global debt is hitting higher and higher and it rose to $247 trillion in the first quarter of 2018, according to the reports. The reports also said that the non-financial sector accounted for $186 trillion. In this regard, it is important to consider the debt-to-gross ration that ratio has exceeded 318 percent, marking its first quarterly rise in two years which was mentioned in a report by the Institute of International Finance (IIF).
GLOBAL DEBT CRISIS
- The GLOBAL DEBT CRISIS related to the increasing global debt is with the future resources and rights of future generations. It cannot be ignored that the increase in debt today is going to damage the future resources for the purpose of current fulfillment of the needs. The rising global debt is a hurdle towards the implementation of sustainable development models for countries.
- The greater risk is for poor countries. The burden is greater than ever. Due to slow growth, poor countries are unable to service the payments and the cycle of indebtedness is continuing.
- A crucial threat is also for the GDPs of the nation as a higher percentage of GDP is consumed by the payments of debt. Solutions can stop this from expanding in the future.