Subscribe Login
Jamaica Observer
ePaper
The Edge 105 FM Radio Fyah 105 FM
Jamaica Observer
ePaper
The Edge 105 FM Radio Fyah 105 FM
    • Home
    • News
      • Latest News
      • Cartoon
      • International News
      • Central
      • North & East
      • Western
      • Environment
      • Health
      • #
    • Business
      • Business Bites
      • Social Love
    • Sports
      • Football
      • Basketball
      • Cricket
      • Horse Racing
      • World Champs
      • Commonwealth Games
      • FIFA World Cup
      • Olympics
      • #
    • Videos
    • Entertainment
      • Music
      • Movies
      • Art & Culture
      • Bookends
      • #
    • Lifestyle
      • Page2
      • Food
      • Tuesday Style
      • Food Awards
      • JOL Takes Style Out
      • Design Week JA
      • Black Friday
      • #
    • All Woman
      • Home
      • Relationships
      • Features
      • Fashion
      • Fitness
      • Rights
      • Parenting
      • Advice
      • #
    • Obits
    • Classifieds
      • Employment
      • Property
      • Motor Vehicles
      • Place an Ad
      • Obituaries
    • More
      • Games
      • Elections
      • Jobs & Careers
      • Study Centre
      • Jnr Study Centre
      • Letters
      • Columns
      • Advertorial
      • Editorial
      • Supplements
      • Webinars
    • Home
    • News
      • Latest News
      • Cartoon
      • International News
      • Central
      • North & East
      • Western
      • Environment
      • Health
      • #
    • Business
      • Business Bites
      • Social Love
    • Sports
      • Football
      • Basketball
      • Cricket
      • Horse Racing
      • World Champs
      • Commonwealth Games
      • FIFA World Cup
      • Olympics
      • #
    • Videos
    • Entertainment
      • Music
      • Movies
      • Art & Culture
      • Bookends
      • #
    • Lifestyle
      • Page2
      • Food
      • Tuesday Style
      • Food Awards
      • JOL Takes Style Out
      • Design Week JA
      • Black Friday
      • #
    • All Woman
      • Home
      • Relationships
      • Features
      • Fashion
      • Fitness
      • Rights
      • Parenting
      • Advice
      • #
    • Obits
    • Classifieds
      • Employment
      • Property
      • Motor Vehicles
      • Place an Ad
      • Obituaries
    • More
      • Games
      • Elections
      • Jobs & Careers
      • Study Centre
      • Jnr Study Centre
      • Letters
      • Columns
      • Advertorial
      • Editorial
      • Supplements
      • Webinars
  • Home
  • News
    • International News
  • Latest
  • Business
    • Business Bites
  • Cartoon
  • Games
  • Food Awards
  • Health
  • Entertainment
    • Bookends
  • Regional
  • Sports
    • Sports
    • World Cup
    • World Champs
    • Olympics
  • Videos
  • Career & Education
  • Classifieds
  • All Woman
  • Environment
  • Webinars
  • More
    • Football
    • Elections
    • Letters
    • Advertorial
    • Columns
    • Editorial
    • Supplements
  • Epaper
  • Design Week
IMF says debt levels highest since World War II
News
April 12, 2016

IMF says debt levels highest since World War II

WASHINGTON, United States (AFP) — Public debt has soared in advanced economies to the highest levels since World War II as governments struggle against slow growth and deflation, the International Monetary Fund warned Wednesday.

Levels of government borrowing have picked up since the financial crisis and continue to rise as economic powers like Japan and Europe remain mired in very slow growth and many emerging and poorer economies struggle with the plunge in income from commodities like oil and metals.

The higher borrowing makes it harder for governments to spend any more to support growth, as the Fund has urged.

On average for advanced economies, the IMF said in its new Fiscal Monitor report, “public debt now exceeds the level observed during the Great Depression and is approaching the level immediately after World War II.”

For advanced economies, debt has risen to over 107 percent of gross domestic product, with Japan at almost 250 percent.

Emerging market economies are better off at just under 50 percent of GDP, but their needs are rising and many face greater challenges, including sharply higher fiscal deficits, than the advanced economies.

The strain between higher debt and the need to keep spending is contributing to the slow pace of growth. 

The IMF lowered its global growth forecast for 2016 on Tuesday to 3.2 percent and warned of the risk that growth could stall worldwide if action was not taken.

“Advanced economies are facing the triple threat of low growth, low inflation, and high public debt. This combination of factors could create self-reinforcing downward spirals,” it said.

Slow growth means that the financing needs of many countries are rising just as the availability of funds is tightening. The US central bank in particular has begun to raise interest rates, hiking the costs of borrowing for most countries.

As a result, more countries are approaching the World Bank and IMF for support. 

The World Bank says loan requests have surged to levels only seen during financial crises. The IMF has also seen a rise in requests for support programs, the most recent from Angola, whose financial position has been devastated by the crash in oil prices.

The IMF urges countries with some fiscal space to spend more while others need to focus spending on anything that will accelerate growth: infrastructure, education, business creation and research and development.

“A lasting solution to the debt overhang problem is not possible without higher medium-term growth,” the IMF said.

{"website":"website"}{"jamaica-observer":"Jamaica Observer"}
img img
0 Comments · Make a comment

ALSO ON JAMAICA OBSERVER

Venezuelan fashion house stitches body bags for quake victims
Football, Latest News
Venezuelan fashion house stitches body bags for quake victims
July 14, 2026
CARACAS, Venezuela (AFP) — Seamstresses at Venezuelan fashion label By Efrain Mogollon are used to making colourful dresses with ruffled sleeves and e...
{"jamaica-observer":"Jamaica Observer"}
Reggae singer Fantan Mojah has died
Entertainment, Latest News
Reggae singer Fantan Mojah has died
CLAUDE MILLS, Observer Online writer 
July 14, 2026
Reggae singer Fantan Mojah has died aged 49, just three weeks before his 50th birthday. The Rastafarian firebrand is said to have passed away on Tuesd...
{"jamaica-observer":"Jamaica Observer"}
Cuban lives cut short as health system flatlines
Latest News, Regional
Cuban lives cut short as health system flatlines
July 14, 2026
HAVANA, Cuba (AFP) — Rosa Valentina Perez has been lying in a bed in Cuba's main cancer clinic for nearly three weeks, waiting for a CT scan to diagno...
{"jamaica-observer":"Jamaica Observer"}
Investigators still trying to determine cause of Bahamas plane crash that killed 10
Latest News, Regional
Investigators still trying to determine cause of Bahamas plane crash that killed 10
July 14, 2026
NASSAU, The Bahamas (CMC) – The Bahamas’ chief investigator with the country’s Aircraft Accident Investigation Authority (AAIA), Kendall I Dorsett Jr ...
{"jamaica-observer":"Jamaica Observer"}
61-y-o man at centre of teen attack case faces rape, firearm-related charges
Latest News, News
61-y-o man at centre of teen attack case faces rape, firearm-related charges
July 14, 2026
ST THOMAS, Jamaica – A St Thomas man who was allegedly attacked by two teenage girls at a guest house in Morant Bay, St Thomas on July 5, is now facin...
{"jamaica-observer":"Jamaica Observer"}
Carpenter charged in connection with 2022 double murder
Latest News, News
Carpenter charged in connection with 2022 double murder
July 14, 2026
KINGSTON, Jamaica — A 52-year-old carpenter has been charged with two counts of murder following the 2022 shooting deaths of two men and the wounding ...
{"jamaica-observer":"Jamaica Observer"}
‘Immense disappointment’ Mbappe rues end of World Cup dream
Football, Latest News, Sports, ...
‘Immense disappointment’ Mbappe rues end of World Cup dream
July 14, 2026
ARLINGTON, United States (AFP) — Kylian Mbappe rued the end of France's World Cup dream on Tuesday, blaming tactical and technical blunders for his si...
{"jamaica-observer":"Jamaica Observer"}
Forex: $159.13 to one US dollar
Latest News, News
Forex: $159.13 to one US dollar
July 14, 2026
KINGSTON, Jamaica — The United States (US) dollar on Tuesday, July 14, ended at $159.13, down by 61 cents, according to the Bank of Jamaica’s daily ex...
{"jamaica-observer":"Jamaica Observer"}
❮ ❯

Polls

HOUSE RULES

  1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper; email addresses will not be published.
  2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
  3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
  4. Please do not write in block capitals since this makes your comment hard to read.
  5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.
  6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.
  7. Lastly, read our Terms and Conditions and Privacy Policy

Recent Posts

Archives

Facebook
Twitter
Instagram
Tweets

Polls

Recent Posts

Archives

Logo Jamaica Observer
Breaking news from the premier Jamaican newspaper, the Jamaica Observer. Follow Jamaican news online for free and stay informed on what's happening in the Caribbean
Featured Tags
  • Editorial
  • Columns
  • Health
  • Auto
  • Business
  • Letters
  • Page2
  • Football
Categories
  • Business
  • Politics
  • Entertainment
  • Page2
  • Business
  • Politics
  • Entertainment
  • Page2
Ads
img
Jamaica Observer, © All Rights Reserved
  • Home
  • Contact Us
  • RSS Feeds
  • Feedback
  • Privacy Policy
  • Editorial Code of Conduct