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WB economist highlights rising debt concerns in Asia


World Bank Chief Economist Indermit Gill warned about the increasing debt levels in "seemingly healthy" Asian countries, which could potentially pull down the region's growth rate below current predictions. Criticizing the slow pace of debt restructurings under the G20 Common Framework, Gill emphasised the urgency of accelerating these processes. He noted that the heightened government borrowing within domestic markets could hinder credit accessibility for private companies, leading to stunted investment. “There's a lot of government and private consumption financed through debt but not much investment through credit”, Gill stated. Although he did not mention specific countries, a World Bank report highlighted that the average South Asian nation's government debt is around 85% of its GDP, surpassing other emerging markets.

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