The dangers of debt are worrying the International Monetary Fund. <br /><br /> It says global debt, both public and private, has hit an all-time high of $152 trillion (136 trillion euros).<br /><br /> That was 225 five percent of the world’s economic output last year, up from about 200 percent in 2002.<br /><br /> Private sector debt accounts for two thirds of global debthttps://t.co/vP5S8QgKCY #FiscalMonitor pic.twitter.com/8KrtoVvE3K— IMF (@IMFNews) October 6, 2016<br /><br /> It is particularly concerned about China and Brazil noting that rapid increases in private debt often lead to financial crises.<br /><br /> The IMF is warning excessive private debt could disrupt the economic recovery and is a risk to financial stability as it leads to recessions that are longer and deeper than normal recessions. <br /><br /> #iMFDirect blog: Big Bad Actors: A Global View of Debthttps://t.co/ghDwMwTCRd #FiscalMonitor pic.twitter.com/srz0NxhCBv— IMF (@IMFNews) October 5, 2016<br /><br /> At the same time it is encouraging those countries that can afford it to spend more to boost flagging growth.<br /><br /> IMF managing director Christine Lagarde has urged the Fund’s 189 member governments that have “fiscal space” – the ability to sustainably borrow and spend more – to do so.<br /><br /> The Fund’s desire to see targeted fiscal support for consumer demand is accompanied by calls for continued accommodative monetary policy and accelerated structural reforms aimed at boosting countries’ economic efficiency.<br />
