Published on : Oct 05, 2018
The International Monetary Fund (IMF) has warned that a financial crisis is about to hit the global market. This is because the global debt has risen steeply and economies are getting badly affected because of it. The rapid development of financial technologies has posed a challenge to the financial system. The IMF stated that the condition this time might be worse than that experienced in 2008.
Financial experts have already talked about the forthcoming financial crisis in 2020, and now IMF is cautioning about another financial meltdown. Extreme lending and lack of capability to impose strict restrictions on asset managers managing trillion dollar funds and insurance companies are considered as the key factors sighted by IMF for the upcoming financial crisis.
This time the global debt is much more than that in 2008. Currently, the global debt has grown more than 60% in both the public and private sector, coming down to US$182 tn, as revealed by the head of IMF, Christine Lagarde. Thus, the condition like this will make the organizations and governments more susceptible to destabilization. As per the analysis present in the economic outlook of IMF shows that there is huge challenge surrounding numerous economies. Thus, the economic perspective of IMF is indicating toward the second great depression.
In addition, growing prevalence of digital economies such as Bitcoin with digital trading platforms has also raised the question of how the digital currencies will be taken by various crypto enthusiast.