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Debt Burden in Advanced Economies Now a Global Threat - Brookings Institution
Sobering.
Overall, IMFs latest Fiscal Monitor (FM, April 2011 and June 2011 Update) and World Economic Outlook (WEO, April 2011 and June 2011 Update) show that the level of aggregate net government debt in the world rose from $21,900bn in 2007 to an expected $34,400bn in 2011. IMF forecasts indicate the level will reach $48,100bn in 2016. The ratio of world net debt to world GDP rose from 42 percent in 2007 to 57 percent in 2011, and is expected to hit 58 percent in 2016.
Over the past year, there has been a modest improvement in the forecasts for U.S. debt levels relative to earlier forecasts thanks to stronger revenues and lower spending levels than expected. If the U.S. recovery remains weak and employment growth stalls, some of this apparent improvement may be reversed. Japans debt ratio is expected to worsen as a result of tepid output growth and the reconstruction costs following the earthquake and tsunami. Lack of growth has also worsened the debt positions of peripheral European economies.
Sobering.