Debts and debtors: more details

As expected, were surprised at the updated levels of indebtedness of countries with economies mature, according to a survey by the McKinsey Global Institute (MGI), mentioned in the text published in the previous blog. Some even doubt the correctness of the data.

Well, there is no error. Japan carries, in fact, the bulk of debt - public and private combined - in relation to GDP in the ten economies surveyed (U.S., UK, Germany, Spain, France, Italy, Canada, South Korea, Australia and Japan). The total volume of Japanese debt is more than six times the total annual net production in Japan, in cash.

Canada, which registers the least amount of debt to GDP ratio in the analyzed group still shows a total debt three and a half times larger than its GDP. On average of ten countries, the debts totals to more than four times the production of one years.

There is curious that the accumulated debt goosed the countries of Europe are proportionally smaller than in large mature economies. Except for Ireland, the champion of champions, with a total debt of seven and a half times the GDP, the others (Spain, Italy, Greece and Portugal), add total debt, on average, four times GDP.

Anyway, compared to the largest emerging is a deluge of debt. The debt does not come to China three times its GDP and India is barely twice. In Brazil, between public and private debt, total net production exceeds one year "only" two and a half times.

The size of the debt indicates the size of the challenge that faces the deleveraging process and the high degree of difficulty to overcome the narrow limits to growth. It also indicates the possible long interval of time between now and the overcoming of these constraints.

And the total debt has not stopped growing.

Source: http://blogs.estadao.com.br/jpkupfer

A greeting,

Adriana Gurgel

Profesora y Consultora Internacional

www.taiba.info

http://adrianagurgel.blogspot.com

selectirrhh@yahoo.es