23rd February 2024 Today’s Round-Up of Economic News
by Kali | Feb 23, 2024
World Bank: Emerging economies must grow ‘much faster’ to repay debt
The World Bank warned that high borrowing costs have “changed dramatically” the need for developing nations to boost sluggish economic growth.
The multilateral lender’s latest warning comes as international bond sales from emerging market governments hit an all-time record of $47 billion in January, led by less risky emerging economies such as Saudi Arabia, Mexico and Romania.
However, some riskier issuers have started to tap markets at higher rates. Kenya recently paid more than 10% on a new international bond – the threshold above which experts often consider borrowing unaffordable.
https://finance.yahoo.com/news/world-bank-warns-emerging-economies-125837678.html
Global debt has surged to a record high of $313 trillion (£248 trillion), as higher interest rates drive up borrowing costs for companies and governments worldwide.
Borrowers took on an extra $15 trillion in 2023, according to the Institute for International Finance, meaning the world’s debt pile has risen by more than $100 trillion in the past decade.
Government debts alone hit $89.9 trillion, up from $71 trillion on the eve of the pandemic and less than $33 trillion before the financial crisis.
The sharp rise in interest rates across much of the world means that the cost of servicing these debts is rising painfully.
https://www.telegraph.co.uk/business/2024/02/21/global-debt-surges-record-high-borrowing-costs-bite/
Cop28 president warns of ‘energy turmoil’ unless demand is tackled
Governments must address the costs of transitioning towards clean energy to avoid the world descending into “energy turmoil”, the president of last year’s Cop28 summit has warned…
“Let me be clear, the energy transition will lead to energy turmoil, if we only address the supply side of the energy equation,” he said. “We must tackle the demand side at the same time.”
“We can’t and should not pursue the energy transition by only looking and working on one side of the equation.”
https://www.independent.co.uk/climate-change/sultan-al-jaber-cop28-energy-crisis-b2500054.html
