Before the crash of 2007, the markets were booming and borrowing was at an all time high. The economy was healthy and people had the money to pay off the money owed from all the borrowing. As we now know, the worldwide market and economy suffered an incredible blow during 2007 and 2008. So what has been the worldwide consequence of the crash and how has it affected the world. We spoke with Wescot, a debt specialist, about the subject and here’s their overview of the global debt situation what’s caused the dramatic change in debt levels.
Global Debt Numbers
Since the crash of 2007, global debt has risen by $57 trillion. This means the global debt is now at an incredible $199 trillion. These are eye-watering numbers and one of the main reasons for such high figures is the world’s government simply increasing their own debts. In the seven years since the crash, worldwide governments debts have increased by $25 trillion. It’s amazing that for all the modern technology and information politicians, bankers and investors have, the world still finds itself in a very unhealthy financial position.
Who’s Reduced Their Debt?
When it seems that the whole world is only adding to the debt problem, there are a small handful of countries who are actively reducing their debt; Israel, Saudi Arabia, Romania, Egypt and Argentina. This is a massive achievement and amongst troubled financial times, this should be applauded. This is in stark contrast to countries like China who have managed to increase their debt by a whopping 83%.
What of the United Kingdom?
The UK has been dealing with the aftereffects of the crash much like the rest of the western world. Since 2007, the UK’s debt number has increased by an approximate 30%. Where has this come from? Well put simply, government debts have increased by 50% whilst household and corporate debts have decreased giving us the final number of an increase of 30%, which is still a significant rise in debt.