Global debt has increased by US$57tn since 2007 to almost US$200tn, according to Financial Times. As a share of gross domestic product, debt has risen from 270% to 286% as calculated by McKinsey consultancy.
According to the study, China’s total debt, including the financial sector, has nearly quadrupled since 2007 to the equivalent of 282 per cent of GDP. High debt levels could make it harder for central banks to “normalise” monetary policy without disrupting the real economy, McKinsey said.
Czech economy remains relatively low-indebted, in spite of the impressive loan growth seen in the last decade. Since 2005, the bank loans increased from 36% to nearly 62% of GDP now due mainly to a boom in the residential mortgage lending. Also, public debt increased significantly from 27% in 2005 to more than 42% of GDP now. Still, with overall debt exceeding only slightly 100% of GDP, the economy is still far off the level seen elsewhere.