To see nominal numbers of debt increasing won’t tell us much, so it is better to look at debt expressed as percentage of GDP. Also we need to compare current growth to something, so I am comparing growth in 10 years until the most recent data (2008-2018) with growth in 10 years until the Great Recession (1998-2008).
One thing is seen at once – the governments in most countries are getting more debt than before.
Corporations and household are increasing their debt in more countries than decreasing, but the rate of increase is slower now and more countries are decreasing than before. We’re less crazy than in those crazy times.
What: Debt made of loans and debt securities expressed in % of GDP. When: 1998 – 2018 Where: 103 countries of the world. Iceland was removed from the chart and they know why. (Because of extreme numbers, debt levels reaching over 700%). Also, there might be some bias in the data, because not all countries have data for all periods and all debt receivers. Source: BIS
This graph is for you to observe the nonexistence of any relationship. The correlation between these two datasets is only 9%. Every region has values across a wide range of debt values, however, each regions’ GDP variation is specific to that region. Conclusion – debt does not mean a better life. I guess – ways of using it do.
What: General government gross debt as a percent of GDP and GDP per capita at constant prices of 2010 in USD. When: 2018 Where: Countries that have both statistics. Source: IMF and WB
As expected – overdeveloped Japan and troublesome Greece lead, however, the following positions are really versatile, there are absolutely no clues to support the idea that more developed countries are indebted more.
* I have read rumours that China is hiding their actual debt via various schemes with government-owned banks. Their debt might be larger. It’s 50% according to the data I have.
What: General government gross debt as a percent of GDP. I wanted to use net debt, but it was not available for most countries. When: mostly estimates for 2018 Where: World Source: IMF WEO report April 2019
Seems like the more advanced the economy the more indebted it is. Is debt a fuel for growth? Or is it a by-product of it?
What: General government gross debt as a percent of GDP. I wanted to use net debt, but it was not available for most regions. When: estimates for 2018 Where: regions provided by IMF Source: IMF WEO report April 2019