Summary of “The $247 trillion global debt bomb”

The untold story of the world economy – so far at least – is the potentially explosive interaction between the spreading trade war and the overhang of global debt, estimated at a staggering $247 trillion.
Here’s where the trade war and debt may intersect disastrously.
In the first quarter of 2018 alone, global debt rose by a huge $8 trillion.
In 2018 and 2019, about $1 trillion of dollar-denominated emerging-market debt is maturing, the IIF says.
Debt can either stimulate or retard economic growth, depending on the circumstances.
If debt growth is not sustainable, as Tran believes, new lending will slow or stop.
The meaning of the $247 trillion debt overhang is that many countries will be dealing with the consequences of high or unsustainable debts – whether borne by consumers, businesses or governments.
“If you are in a high-debt situation, you need to bring the debt down, either absolutely or as a share of GDP,” Tran said at the briefing.

The orginal article.