Watchdog Warns About Global Economy Ahead Of G20
Historically High Debt Beginning To Feel Credit Crunch From Higher Interest Rates
September 5, 2023—As world leaders travel to New Delhi, India for the G20 Summit, the head of an international body monitoring global finance issued a stark warning about debt and stability. In short, interest rate hikes since March 2022 are beginning to impact markets, according to Klaas Knot, a Dutch economist and chair of the Financial Stability Board.
'Historically High Debt'
Writing on behalf of the board, Knot warned that a combination of factors could "impair the capacity of borrowers to service the historically high stock of outstanding global debt."
Those factors include high global debt, interest rate hikes, persistent inflation, tighter financial markets, and a slowing economy, ac...