Today's Edition
ABU DHABI (ALETIHAD)
A recent insight by the Economic Studies Department at TRENDS Research and Advisory indicates that the global debt crisis has been exacerbating, posing a significant threat to the global economy.
The insight provides an in-depth analysis of the global debt crisis, highlighting the risks and challenges facing the global economy. It also proposes innovative solutions to address this complex issue, making it a valuable reference for those interested in global economic affairs.
Released in English, the insight points out that several recent geopolitical developments, primarily COVID-19 and the Russia-Ukraine war, have exacerbated the crisis, especially with rising global interest rates and tighter monetary policies.
The insight warns of five major risks resulting from the ongoing debt crisis, including reduced global investment opportunities, increased fragility of the global financial system, and obstruction of development efforts in developing countries.
Additionally, it emphasises that the debt crisis negatively impacts efforts to combat climate change due to the depletion of financial resources needed for environmental protection.
Despite the difficulty in predicting future scenarios for the global debt crisis, the insight suggests that the pace of rising international debts will continue, with some international efforts to contain its escalation.
The insight proposes several bold solutions to exit the debt crisis, including exchanging outstanding debts for production opportunities in developing countries, linking climate action with the forgiveness of part of the debt under the auspices of the United Nations and its organisations supporting climate issues, strengthening the role of international organisations and multilateral banks in leading smart solutions to the debt crisis, cancelling some of the debts owed by heavily indebted countries and relying on debt diplomacy to support the debtor countries.
