Reference no: EM131882333

Instructions

You have been instructed to produce a report on global debt. The concern is whether globally debt has grown and by how much, what are the challenges and why, and how can these be addressed.

Your manager has informed you that you should start with a McKinsey & Company report on global debt, Debt and (not much) deleveraging), published early in 2015 and which is available on their website.

You have the option of improving your report by referring to another article or two to provide different perspectives on the issue.

Responded to the main question correctly - global debt grew by $ 57 trillion 7 years after the global credit bubble burst

1. Covered sub-question on what are the challenges and why: increase in government debt by $25 and challenges:

a) Ratio of debt to GDP up 17%, Recession and weak recovery,

b) Financial bailouts and stimulus programs,

c) Is this level of debt sustainable?

2. Sub-question on what are increases/challenges and why: increase in household debt and challenges:

a) Higher debt-to-income ratios in countries like Canada, Australia, Sweden, etc. have exceeded peak levels,

b) How to manage household debts safely

3. Sub-question on what are increases/challenges and why: China's debt increased to $28 trillion and challenges:

a) Linked to overheated real-estate market,

b) Unregulated shadow banking,

c) Debt to many local governments unsustainable?