{"id":96481,"date":"2022-07-29T04:06:05","date_gmt":"2022-07-29T04:06:05","guid":{"rendered":"https:\/\/websitedesigns.com.au\/elankanew\/?p=96481"},"modified":"2022-07-29T04:06:54","modified_gmt":"2022-07-29T04:06:54","slug":"imf-warns-rising-debt-in-asia-puts-region-at-risk-by-ravi-buddhavarapu-2","status":"publish","type":"post","link":"https:\/\/websitedesigns.com.au\/elankanew\/imf-warns-rising-debt-in-asia-puts-region-at-risk-by-ravi-buddhavarapu-2\/","title":{"rendered":"IMF warns rising debt in Asia puts region at risk – By Ravi Buddhavarapu"},"content":{"rendered":"

IMF warns rising debt in Asia puts region at risk – By Ravi Buddhavarapu<\/span><\/strong><\/span><\/h1>\n
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  • \u201cIf you look at debt for the region, if you look at Asia\u2019s share of total debt, aggregate debt, that\u2019s gone up quite sharply,\u201d Srinivasan, the director of the Asia and Pacific Department at the IMF, told CNBC\u2019s \u201cSquawk Box Asia\u201d on Wednesday.<\/li>\n
  • \u201cSo there are many countries in the region which are facing high debt numbers. And some of these countries are in debt distress territory. And so that\u2019s something which we have to watch out for,\u201d he told CNBC\u2019s Squawk Box Asia.<\/li>\n
  • Inflation will be a \u201cbig factor,\u201d particularly for advanced economies in Asia this year, he said.<\/li>\n<\/ul>\n

    Source :\u00a0cnbc.com<\/a>\u00a0<\/span><\/span><\/p>\n

    \"IMF
    Aggregate debt in Asia has gone up sharply, according to an IMF expert who mentioned Laos, among others in Asia, as a country that could be at risk. The country houses many Budddhist monuments, such as the \u201cGreat Stupa,\u201d seen here in a stock photo, the most important Buddhist monument located in Vientiane, the capital of Laos. Phoonsab Thevongsa | Moment | Getty Images<\/span><\/figcaption><\/figure>\n

    Rising debt levels driven by inflation and tightening financial conditions across Asia are cause for concern, according to the International Monetary Fund\u2019s Krishna Srinivasan.<\/span><\/p>\n

    \u201cIf you look at debt for the region, if you look at Asia\u2019s share of total debt, aggregate debt, that\u2019s gone up quite sharply,\u201d Srinivasan, the director of the Asia and Pacific Department at the IMF, told CNBC\u2019s \u201cSquawk Box Asia\u201d on Wednesday.<\/span><\/p>\n

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    <\/div>\n<\/div>\n

    He said debt in the region has risen from 25% before the pandemic to 38% now.<\/span><\/p>\n

    Srinivasan said countries at risk include Laos, Mongolia, Maldives and Papua New Guinea, noting Sri Lanka has already defaulted on its debt repayments.<\/span><\/p>\n

    Inflation in Laos hit\u00a0<\/strong>23.6% in June<\/a>. The Asian Development Bank estimates Mongolia\u2019s\u00a0annual inflation will hit 12.4% in 2022<\/a>.\u00a0<\/strong>Maldives has been struggling with high debt for years. While the Maldives\u2019 debt-to-GDP ratio has fallen over the past two years, it is still high at about\u00a0100% of GDP.<\/a><\/span><\/p>\n

    \u201cSo there are many countries in the region which are facing high debt numbers. And some of these countries are in debt distress territory. And so that\u2019s something which we have to watch out for,\u201d Srinivasan said.<\/span><\/p>\n

    In its global economic outlook released Tuesday, the\u00a0IMF forecast a sharp slowdown<\/a>\u00a0in global growth from 6.1% last year to 3.2% this year, predicting growth in both China and India will be hit.<\/span><\/p>\n