1. Should We Worry About Corporate Leverage?
- Author:
- Şebnem Kalemli-Özcan
- Publication Date:
- 10-2019
- Content Type:
- Policy Brief
- Institution:
- Economics for Inclusive Prosperity (EfIP)
- Abstract:
- There has been a large increase in corporate leverage in many countries since the early 2000s. Figure 1 plots corporate debt to GDP since 2002 for different groups of countries. With the exception of the U.S., both advanced economies and emerging markets have corporate debt exceeding GDP since 2005. U.S. corporate debt is also on an increasing trend. The fastest growth in corporate debt has been observed in emerging markets. A closer look will reveal that China and other fast growing emerging countries in Asia drive most of the increase in corporate debt for the emerging markets.
- Topic:
- Debt, Economics, Markets, Regulation, Multinational Corporations, and Economic Policy
- Political Geography:
- United States and Global Focus