The global economy is highly vulnerable to a debt crisis as dangerous levels of business and government borrowing could crush growth and exacerbate any slump, the International Monetary Fund has warned.
Record corporate borrowing in the US could turn boom into bust in the world’s largest economy.
Risky links between banks and governments in the eurozone threaten to restart the sovereign debt crisis. This is a particular risk in Italy where government debt is still rising and its banking sector is weak.
And China’s government, business and household debts all pose a risk to this engine of global growth.
“Vulnerabilities like these are on the rise across advanced and emerging market economies,”...
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