(VOVworld) - Worldwide public and private debt is at record 152 trillion USD, posing a substantial impediment to getting global economic growth back to normal, the International Monetary Fund (IMF) said Wednesday.

Christine Madeleine Odette Lagarde, Managing Director of the International Monetary Fund (Photo: VNA)

According to the IMF’s new Fiscal Monitor report, global debt, both public and private, reached 225% of global GDP last year, up from about 200% in 2002. 60% of the debt belongs to the private sector. The IMF's Fiscal Affairs Department chief Vitor Gaspar said debt at such levels while economic growth remains tepid heightens the risk of financial crises. He added that high debt levels are costly as they often end up in financial recessions that are deeper and longer than normal. He noted that excessive private debt is a major headwind against the global recovery and a risk to financial stability. The IMF said significant deleveraging to take place, it’s necessary to restore robust growth and return inflation levels to normal. This will require governments to stimulate growth though investment, fiscal and business reforms, and targeted programs to help indebted companies lower their debts.