Hey there and welcome to real investment news I’m Mike O’Neill the International Monetary Fund has just come out with its semi annual fiscal monitor report and things are looking a bit scary mainly because of debt but first the good news the IMF is forecasting a 3.
9 percent expansion of the global economy in this year and next now this.
Strongest upswing we have seen since 2011 China is actually going to have the biggest jumps of about 6.
is forecast to be a little below average at about 2.
7 percent but as I said there is always the debt public and private debt soared to 164 trillion dollars in 2016 that’s the last year that these numbers were available that is 225 percent of the global gross domestic product that’s the highest percentage since 2008 when we hit 213 percent and last year the IMF warned that more than 20% of American corporations are at risk of defaults once those interest rates starting to rise and which is happening right now that could.
Add up to nearly four trillion dollars in defaults and take a look at this among the advanced economies in the world only the u. is expecting to see an increase in that debt to GDP ratio over the next five years the solution proposed by the IMF stopped using lower taxes and higher public spending to stimulate growth which says the IMF is already climbing at a healthy rate so essentially exactly the opposite of what we are doing now as you can imagine the.
Trump administration feels that the stimulus is going to pay for itself we will see but that’s it for now thank you so very much for.
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