IMF: Australia under more mortgage stress than any other nation -
Levin - 11-10-2023
Martin Farrer
Tue 10 Oct 2023 13.58 BST
Australia has the highest level of mortgage stress in the developed world, according to figures from the International Monetary Fund, with 15% of income devoted to paying off loans.
Borrowers have been floored by a series of rate rises by the Reserve Bank of Australia starting in May last year and continuing for eight months in a row until December 2022 when the IMF compiled its figures.
The increased cost of borrowing has left Australia at the top of the league for debt with Canada second followed by Norway and the Netherlands.
Another four rate rises since December are likely to have pushed Australian’s exposure to debts even further with the cash rate now at 4.1%.
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5% of banks globally are vulnerable to stress if central bank interest rates remain higher for longer.
A further 30% of banks – including some of the world’s largest – would be vulnerable if the global economy enters a period of low growth and high inflation, or “stagflation”, the IMF said.
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It said the global economy has a better chance of dodging a hard landing, based on fresh forecasts, though advanced economies like Australia can still expect a stretch of subdued growth.
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the global economy had displayed “remarkable resilience” as it recovered from the pandemic, the conflict in Ukraine and an inflation surge.
https://www.theguardian.com/business/2023/oct/10/australia-under-more-mortgage-stress-than-any-other-nation-says-imf
RE: IMF: Australia under more mortgage stress than any other nation -
Tangsen - 11-10-2023
SGbodoh will dispute that and claim it is China not inbred white ex colonial convicts inbred