McKinsey&Co. Global Institute’s report on global debt begins, “Seven years after the bursting of a global credit bubble resulted in the worst financial crisis since the Great Depression, debt continues to grow. In fact, rather than reducing indebtedness, or deleveraging, all major economies today have higher levels of borrowing relative to GDP than they did in 2007. Global debt in these years has grown by $57 trillion, raising the ratio of debt to GDP by 17 percentage points (Exhibit 1). That poses new risks to financial stability and may undermine global economic growth.”

It is only the financial and household sectors where debt growth rate has slowed.

Troubling signs

The authors - messers Dobbs, Lund, Woetzel and Mutafchieva - point out that there are several worrying signs, particularly China which they go into great detail:

Source & Copyright©2015 - McKinsey&Co. 

The McKinsey solution

Inevitably McKinsey&Co. suggest what is needed:

Source & Copyright©2015 - McKinsey&Co. 

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CTMfile take: Be very careful everywhere, and especially in China. Hang onto your cash. This report is worth downloading and studying as to what are the implications for our company/group, see here.