(VOVWORLD) - Global debt has reached a record high 188 trillion USD, or about 230 percent of the world's economic output, International Monetary Fund chief Kristalina Georgieva said Thursday.
 International Monetary Fund Managing Director Kristalina Georgieva (Photo: AFP) |
She warned of the risks such debt poses to financial stability. According to Georgieva, the recent buildup of public debt in advanced economies is largely a result of policy responses to the global financial crisis. In developing countries, meanwhile, the debt increase reflects sharp declines in commodity prices, natural disasters, civil conflict, and high investment spending on unproductive projects.