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Report: Global debt amounted to $ 200 trillion
07/10/2015 11:52 GMT
Organization / UNCTAD / confirmed that the global debt significantly inflated in recent years and reached about $ 200 trillion stressing the need for many countries to restructure their debts.
And it warned in a report the global trade and development for 2015, published on its website that the recent financial turmoil in the world highlight the need for a new approach to international trade and development.
And it predicted that the growth rate in developed countries this year by about 2 percent, noting that global economic growth is still mainly coming from Southeast Asia but has become weaker compared to last year is expected to grow by 5% after the 10% in 2010.
She noted that, for the countries of Latin America, growth is almost up to scratch pointing out that the outlook for global trade volume will be reduced from what it was last year as the demand for commodities from developing countries will be weak due to weak growth next to the drop in the price of those goods as is the case in oil prices in a state that drastically reduced as well as the rest of the other commodities.
She emphasized that the expansionary policies led to a very high liquidity, and thus to funds and flows without restriction and without links and flows directed to productive investments, but mostly geared for Financial Investment flows or investments counter, which could lead to a new bubble to collapse in other economies.
She explained that in the eighties was global finance size roughly equal to the global trade volume and the world produces a quarter of what is produced now, but now has become global finance size equal to eight times the volume of world trade, pointing out that the funds are not used for productive purposes, but in a way bubbles system to benefit speculators.
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