“We haven't seen debt like this since the Napoleonic Wars.”

Summarize this content to 100 words World Economic Forum President Borge Brende offered a grim outlook for the global economy, saying the world faces a decade of low growth unless appropriate economic measures are applied.Speaking at the WEF's Special Meeting on Energy for Global Cooperation, Growth and Development in Saudi Arabia on Sunday, he said global debt ratios are approaching levels not seen since the 1820s. He warned that developed countries were at risk of “stagflation.''“Global growth [estimate] This year it's about 3.2 [%]. “That's not bad, but this is not what we're used to, and we've had a 4% growth rate for decades,” he told CNBC's Dan Murphy, adding that some major countries have seen growth rates in the 1970s. He added that there is a risk of an economic slowdown similar to the one seen in the previous fiscal year.”We cannot get into a trade war. We still have to trade with each other,” he said in response to a question about avoiding a period of low growth.“Trade will change, global value chains will change, there will be more near-shoring and friend-shoring, but we must not drown the baby… in that case we will We have not yet addressed this kind of debt since the Napoleonic wars, and we have a debt that is close to 100% of global GDP. '' he said.He said the government needs to consider how to reduce debt and take appropriate fiscal measures without entering into a situation that triggers a recession. He also argued that persistent inflationary pressures and generative artificial intelligence could present opportunities for developing countries.Borge Brende, President of the World Economic Forum (WEF).Bloomberg | Bloomberg | Getty ImagesHis warning comes in conjunction with a recent report from the International Monetary Fund that found global public debt reached 93% of gross domestic product (GDP) last year and remains 9 percentage points above pre-pandemic levels. There is. The IMF predicted that global public debt could approach 100% of GDP by the end of his decade.The fund also singled out high debt levels in China and the United States, saying the latter's accommodative fiscal policies were weighing down interest rates and public finances. dollar That would raise the cost of funds around the world and exacerbate existing vulnerabilities.Earlier this month, the International Monetary Fund Slightly raised global growth forecasts, He said the global economy had proven “remarkably resilient” despite inflationary pressures and shifts in monetary policy. The company now expects global growth to be 3.2% in 2024, up just 0.1 percentage point from its earlier January forecast.The WEF's Brende said on Sunday that the biggest risk to the global economy is currently “the geopolitical recession that we are facing.” It highlights the recent tensions between Iran and Israel.“There are so many unpredictable things that could easily spiral out of control. If Israel and Iran escalated their conflict, oil prices could reach $150 overnight. “And of course that would be very damaging to the global economy,” he said. He said.
https://www.cnbc.com/2024/04/28/wef-president-we-havent-seen-this-kind-of-debt-since-the-napoleonic-wars.html “We haven't seen debt like this since the Napoleonic Wars.”