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Showing posts with the label Sri Lanka

Debt & GDP - what happens when one default?

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Over the course of the last 2 years, governments of the world had to pump in "money" to protect their economies from collapse.  As a result, most countries are facing record-high inflation in recent times.  Debt has been incurred as they raised the funds to battle Covid and save their economies. Debt to GDP ratio  is a metric looked upon by analysts when coming to how countries were able to pay off their debt. Extract from VisualCapitalist:  Global debt reached $226 trillion by the end of 2020 , seeing the biggest one-year increase since World War II. Borrowing by governments accounted for slightly over half of the $28 trillion increase, bringing global public debt ratio to a record of 99% of GDP. As interest rates rise, IMF officials warn that higher interest rates will diminish the impact of fiscal spending, and cause debt sustainability concerns to intensify . “The risks will be magnified if global interest rates rise faster than expected and growth falters,” the ...

Preview of week starting 25Apr2022

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News summary from last week Facebook & Google will need to better manage their content and data to protect users. A new "Digital Services Act" has been raised in Europe to protect users from dark patterns, and illegal materials.  We can expect other parts of the world to follow. War dragged on in Ukraine though peace talks continued.  Sri Lanka has defaulted and entered into a domestic and economic crisis. The SEC's updated list on Thursday shows that 17 companies, including Li Auto, BEST, CBAK Energy Technology, Luckin Coffee, and Zhihu, were added to the provisional list of issuers identified under HFCAA. news about Shanghai port congestion China promotes talks over sanctions in dealing with Russa, seeing Asia's role in promoting peace.  President Xi proposes a global security initiative.  IMF has warned of the global fallout from Shanghai's lockdown. Covid cases rise in China as the world anticipates supplies and supply chain challenges in the week ahead....