High corporate debt is present across nearly three quarters of the global economy, threatening to amplify any economic downturn and put financial stability in peril, the IMF said on Wednesday.
The fund said that the world should be able to deal with a moderate economic slowdown without a financial crisis, but companies’ borrowing levels made it vulnerable to anything more serious.
Countries representing 70 per cent of global GDP have elevated levels of corporate debt, according to new research by the fund.
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