The dangers of debt are worrying the International Monetary Fund as global debt last year, both public and private, reached two hundred and twenty five percent of the world’s economic output .
That is up from about two hundred percent in 2002.
It is particularly concerned about China and Brazil, noting that rapid increases in private debt often lead to financial crises.
The IMF is warning excessive private debt could disrupt economic recovery and is a risk to financial stability.
At the same time it is encouraging those countries that can afford it to spend more to boost flagging growth.
The findings come at a time that IMF has urged central banks to uphold accommodative monetary policies and accelerate structural reforms aimed at improving countries’ economic efficiency.