The managing director of the International Monetary Fund (IMF), Christine Lagarde, warned today that the global debt has reached a new record, placing itself at 182 trillion dollars (more than 157 trillion euros).
"The global debt – both public and private – has reached a historic record of $ 182 trillion, almost 60% above that registered in 2007"Lagarde said in a speech at the IMF headquarters in Washington.
The Fund projected in July an overall growth of 3.9% for 2018 and 2019, although Lagarde said today that the next forecasts, which will be announced in Bali (Indonesia) from October 8 to 14 at the annual meeting of the Fund and of the World Bank (WB), will be "less bright".
In turn, Lagarde has warned of a possible reduction of the global growth forecast in 2018 as a consequence of the increase in commercial tensions.
In particular, in a speech he warned that economic risks are beginning to "materialize". Thus, he assured that the global growth forecast has become "less clear" than when they estimated in July that world GDP would grow at a rate of 3.9% in 2018 and 2019.
Lagarde has called next week to check the new data, which is when the IMF will present the October update of the report 'World Economic Perspective'.
"If the current trade disputes are escalating, they could cause an economic 'shock' in a greater number of emerging and developing economies," said the director of the international organization.
Faced with this environment, Lagarde has recommended that countries work together to build a global trading system that is "stronger, fairer and more suitable for the future."
"There is a lot at stake because the breakdown of global supply networks has a devastating effect in many countries, including advanced economies. It could also prevent emerging and low-income countries from reaching their full potential, "he warned.
In this regard, the IMF has ensured, based on its calculations, that a 15% reduction in the price of cross-border trade in services could increase the GDP of the G20 by more than 350,000 million dollars (301,000 million euros) in a single year.