GDP - WEF President Warns Of Alarming Global Debt Levels Approaching Historic Highs: 'We Cannot Get Into A Trade War' | Benzinga
Borge Brende, the president of the World Economic Forum (WEF), expressed concerns about the global economy, warning of a potential decade of low growth due to soaring debt levels.
What Happened: Speaking at the WEF’s “Special Meeting on Global Collaboration, Growth and Energy for Development” in Riyadh, Saudi Arabia, Brende highlighted the alarming global debt ratios, which are nearing levels not seen since the 1820s, reported CNBC.
He underscored the risk of “stagflation” in advanced economies and cautioned against a potential trade war, emphasizing the need for continued global trade. Brende also urged governments to address the mounting debt situation, which is approaching 100% of the global GDP.
"We cannot get into a trade war, we still have to trade with each other," he explained when asked about avoiding a period of low growth.
Despite the current global growth estimate of around 3.2%, Brende warned that this is below the previous trend growth of 4% and could lead to a slowdown similar to that seen in the 1970s.
His warning aligns with a recent report from the International Monetary Fund (IMF), which noted that global public debt had risen to 93% of GDP last year, a figure that is still 9 percentage points higher than pre-pandemic levels. The IMF projected that global public debt could approach 100% of GDP by the end of ...