World Bank Chief Economist: Rising Asia debt levels could drag growth in the region
|World Bank Chief Economist Indermit Gill, speaking with Reuters on Monday, said that rising debt levels among seemingly healthy countries in Asia could drag growth in the region below currently forecast levels.
Additional quotes:
Increased government borrowing from domestic markets would limit the level of credit available to private firms, resulting in faltering investment.
There's a lot of government consumption and private consumption being financed through debt. There is not a lot of investment being financed through credit, and that's not great.
We have simultaneous problems of too much debt and too little investment.
The result could be much lower growth than we were forecasting.
The world's focus on the poorest countries that were covered by the Common Framework could lead to surprises in other countries that were seemingly healthy.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.