Global Debt - is it creating a Bubble ?

Global Debt - is it creating a Bubble ?


We are currently playing in the Recession 2020 globally. Despite the worldwide covid-19 impact, there are few factors that are heading to hurt the economy as worst.

The Trade between two nation, Oil Crisis and the border violations are the key factors that due to the Economy. The Global debt is on the rise. The USD 20 Trillion(GDP) United States, had an external debt of 120 Percent to its GDP. The Public Debt is also increasing to 97 Percent to its GDP.

The Second biggest economy, USD 14 Trillion China had an external debt of 17 Percent to its debt as comparing to the Emerging Nations, it is said to be the lowest level. However the Public debt to GDP is around 53 Percent.

Japan had a highest public debt of 282 Percent to it's Debt. On it's external Debt it was around 97 Percent. Germany have a high external debt of 174 Percent to the GDP. The worst hit on United Kingdom is the public debt to GDP stood at 105 Percent and the External Debt to GDP is 296 Percent.

The USD 2.6 Trillion France had a 116 Percent on Public Debt to its GDP. The external debt are also raised to 253 Percent for this nation. On the other hand, India had a Public Debt to GDP of 83 Percent. The external Debt to GDP is also around 22 Percent, which seems better as compare to the Advanced Economies.

On December 2019, the External Debt for India were stood at USD 564 Billion. At the same time, the external debt were increased by USD 118 Billion in the last 5 years.

India's Internal debt comes from Commercial Banks which is around 40 Percent to the total, 24 Percent from the Insurance Companies and 15 Percent from the Central Bank. The Co-operative Banks were contributed around 2 Percent and the Provident Funds at 5.5 Percent.

As the Fundamentals are not good in the Economy, but the Virtual Cash is pumping in the Market. The Global Debt is Rising - is it a sign for creating a Big Bubble ?

The Emerging economies are better than the Advanced Economies, said by the Financial Experts.

Global Debt - Default or Write off ?

Kindly share your views / comments with a smile :)

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