A global debt crisis looms?

“We’re not necessarily at a crisis level, but increasingly higher debt leverage increases the risk of a crisis,” says Chan.

THE problem of excess debt is not just a domestic issue. Globally, debt levels have soared to unprecedented levels. A number of market commentators have long been predicting stock market crashes because of the inflated debt levels.

Global debt has hit a record US$300 trillion (RM1.32 quadrillion) or equivalent to 349% of global gross domestic product (GDP), notes S&P Global Ratings in a recent report.