Debt of Nation

PowerON

PowerON

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You thought USA is highest debt. True but, you see different than you thought...

Our analysis of household debt highlights a number of facts that may come as a surprise. For example:

• Canada now has the highest debt to income ratio among G7 countries, and Italy has the lowest.
• The countries with the highest levels of household debt per adult – Denmark, Norway and Switzerland – are among the wealthiest and most successful;
• Debt has risen significantly in developed countries over the past decade, but it is nowhere near the scale of the developing world, where almost every country has surpassed the global average of 45% growth during 2000–12.
• While a high ratio of debt to net worth does not itself signify a problem for a country, it does appear to send a warning signal when combined with rapid growth in household debt. Greece, Hungary and the United Arab Emirates fall within this category and all have had problems with debt in recent years. These problems were not directly related to household debt, but rapid growth in personal debt in a highly indebted country is perhaps indicative of a relaxed credit environment that may have wider implications.
• Contagion in the Eurozone links Ireland, Italy, Portugal and Spain with the problems in Greece. Our estimates of household assets and debts suggest that Greece is an outlier among Eurozone countries, and that the other countries are better placed to absorb the rise in government debt. However, the deterioration in Ireland’s position since 2008 remains a source of serious concern. Beyond the Eurozone, Hungary and Romania are the countries that need to be most carefully monitored.
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More sources to read...
 
Debt is not good, for individuals or countries.
 
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