IMF Warn Increasing Debt State Forward
August 3, 2009
The International Monetary Fund (IMF), the rising public debt developed countries, leading to hamper efforts to spur economic recovery.
Growth level of debt can damage the trust investors and encourage increased interest rates, and ultimately reverse the increase economy, according to an IMF report.
“With the delays in the withdrawal of investor concerns about sustainability will increase, pushing the interest rate increase in government securities,recovery and increase the risk of ’snow ball’ debt,” said the institute based in Washington.
IMF says the public debt will reflect about 120 percent of gross domestic product (GDP) in 2014 in nine developed countries from Group 20 (G-20). It will reflect the increase of 40 percentage points since the beginning of the financial crisis and global economy in 2007. Read more