Debt Bomb
08:30 Min
Debt Bomb
Why 70 countries in debt could spark the biggest global economic crisis since 1929
11 Dec 2023 12:00pm
Some 70 countries are in or at risk of debt distress - a record number that has the World Bank sounding the alarm. Debt defaults by these emerging and developing countries could lead the world into a global financial crisis perhaps even on par with the Great Depression of 1929. The pattern is clear from three previous debt waves: the Latin American debt crisis of the 1980s, Asian financial crisis of the 1990s, and the global financial crisis triggered by the 2007 US subprime crisis.
About the Show
According to the International Monetary Fund, debt is at the highest level in decades. With high interest rates and a global economic slowdown, 60 percent of low-income countries are either already in debt distress or at high risk of debt distress. Will we see a global financial contagion and a deluge of defaults?
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