Please click on the link below to view Shane Oliver's views on global debt.
Key points raised are:
- Global debt levels have reached new records
- Countries with very high gross debt to GDP include Japan, Belguim, Canada, Portugal and Greece.
- The mains areas of rising debt since the GFC have been public debt in developed countries and private debt in emerging countries
- Global debt is not as a big a concern as headline numbers suggest and debt to income ratios will tend to rise through time simply because of saving and investing.
- Key signs to watch though are a broad-based surge in debt along with signs of excess such as over investment, rapid broad-based gains in asset prices and surging inflation and interest rates.