Debt of world governments exceeds $100 trillionStaff writer ▼ | March 12, 2014
Data published by the Switzerland-based Bank for International Settlements (BIS) has revealed the $30 trillion jump in debt between mid-2007 and mid-2013 was nearly twice the size of US economy (around $16 trillion), as Bloomberg reports.
Analysts at the BIS have explained that the expansion of government spending in recent years has been main cause of debt issuing on such a scale.
This surge of liabilities has also originated the wave of austerity that spread throughout developed (and some developing) countries worldwide, leading to governments reducing spending and increasing taxes to rein in economies and retain international investors on their markets.
Created in 1930, the Bank for International Settlements has its headquarters in Basel and aims at providing assistance to central banks. It also publishes macroeconomic surveys on a monthly and yearly basis. ■