Global debt rises to $199tn

Posted by Kelly Luff in Credit Crunch on 9 February 2015 - Kelly is a Marketing Executive at checkmyfile

Global debt has risen by $57tn since 2007, a new study has found. The McKinsey Global Institute research found that the current worldwide debt stands at $199tn, the equivalent of 286% of GDP. Government debts are the single biggest contributor of the increase, with government indebtedness increasing by $25tn.

Of the 47 largest economies in the world only five managed to reduce their debts – Israel, Egypt, Romania, Saudi Arabia and Argentina. At the other end of the scale, five countries have seen a huge increase in their indebtedness: China’s has risen by 83 percentage points of GDP, Portugal’s by 100, Greece’s by 103, Singapore’s by 129 and Ireland’s by 172 percentage points.

UK indebtedness has increased by 30 percentage points, to 252% of GDP (this excludes financial sector or City debts). The overall debt is high, with only 12 of the big developed or developing countries with bigger debts than Britain.

China’s total debt has quadrupled over the 7 years, rising from $7tn in 2007 to $28tn by mid-2014.

“There are few indications that the current trajectory of rising leverage will change,” the report says. “This calls into question basic assumptions about debt and deleveraging and the adequacy of tools available to manage debt and avoid future crises.”

“Overall debt relative to gross domestic product is now higher in most nations than it was before the crisis”, the report continues. “Higher levels of debt pose questions about financial stability”.

IMF concern for Britain and economic recovery

The International Monetary Fund (IMF) is concerned that Britain’s reliance on credit cards and loans could stunt economic growth and put the past five years of recovery in jeopardy. The UK is currently on a warning list of countries that would be vulnerable to an economic crunch and the UK now has one of the highest household debt figures in the developed world.

Published on 17 Apr 2015 by Paul Anderson Riley

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UK economic growth rises to its highest rate since 2006

The UK economy expanded at a faster pace than expected last year, giving the coalition government a welcome boost ahead of May’s general election.

Published on 7 Apr 2015 by Simon Hadley

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UK inflation rate falls to zero in February

The rate of inflation hit 0% in February - the lowest reading since records began in 1988 according to the UK’s mechanism for recording inflation, the Consumer Prices Index (CPI). In January, the CPI recorded a reading of 0.3% and analysts expected it to drop to 0.1% in February. However, a continued supermarket price war, low oil prices and cheaper toys and books attributed to the greater than expected decrease.

Published on 26 Mar 2015 by Tom Line

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Wealthy people live longer, healthier lives

Women living in more wealthy areas can expect to see an additional healthy lifespan of almost 20 years to those living in deprived areas, research has found.

Published on 10 Mar 2015 by Kelly Luff

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Household income has returned to pre-recession levels

Household incomes are “finally strengthening” according to the Institute for Fiscal Studies (IFS), in spite of the slowest recovery post-recession in recorded history.

Published on 6 Mar 2015 by Ben Tumilty

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UK wages predicted to rise above inflation

For the first time in eight years we’ll see our wages rise above inflation, according to a study. The Ernst & Young ITEM Club report has predicted that there will be a pick-up in pay growth to 1.9% in 2015, amid low inflation.

Published on 24 Feb 2015 by Kelly Luff

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UK unemployment continues to fall

Unemployment across the UK has fallen to its lowest level for more than six years. In the three months of September through to November 2014 the number of people out of work fell by 58,000 to 1.91m. Figures from the Office for National Statistics (ONS) show that the unemployment rate now stands at 5.8% whereas it was 7.1 % the same time last year.

Published on 23 Jan 2015 by Tom Line

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Credit unions as a viable alternative to payday lenders

A new cap on payday loans was introduced in the New Year, meaning that all short-term credit will now capped at a daily rate of interest at 0.8%. Default charges cannot exceed £15 and the maximum amount paid back will not exceed twice what was borrowed.

Published on 20 Jan 2015 by Rebecca Stains

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Falling inflation due to food and petrol prices

A fall in petrol prices and reducing supermarket bills has seen the UK inflation rate fall to the lowest level since records began in 1989. In November 2014 the Consumer Price Index (CPI) measured inflation at a rate of 1%, falling to half of this in December 2014 (0.5%). The CPI, the government’s preferred measure of inflation, has only been at 0.5% once before in May 2000. A fall to 0.7% was expected by economists but the fall to 0.5% took the city by surprise.

Published on 16 Jan 2015 by Paul Anderson Riley

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Construction sector slows

The UK economy is in a difficult position; so much rides on house prices and the construction of new homes and yet we are seeing a situation where many are unable to afford to pay either their mortgage or rent, let alone save for a home. So the construction industry is therefore finding itself in the midst of this problem.

Published on 7 Jan 2015 by Kelly Luff

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