THE ECONOMIST LAUNCHES FIRST EVER GLOBAL PUBLIC DEBT CLOCK
ITEMIZING THE BIGGEST BILL IN HISTORY - $35 TRILLION
New York, NY-- The Economist has launched the Global Public Debt Clock, an interactive tool that allows people to track and forecast public debt in countries around the world. In the spirit of The Economist's famous Big Mac Index, the Global Public Debt Clock is not perfectly accurate, but rather is intended to provide a graphic perspective on an important economic issue. http://buttonwood.economist.
A sampling of data from the Global Debt Clock shows:
· Global public debt is currently at nearly $35 trillion and is predicted to rise to $45 trillion by 2011
· US public debt is currently at $6.7 trillion and is predicted to rise to over $10 trillion by 2011
· Chinese public debt per capita is currently $649.52. In the US, per capita debt is $21,863.70 and will rise to $32,307 per person by 2011
About the Global Public Debt Clock:
http://buttonwood.economist.
The Global Public Debt Clock was developed using data and forecasts from the Economist Intelligence Unit database. It is, of course, inspired by the 'National Debt Clock', a rolling measure of the US public debt that physically resides in midtown Manhattan. This clock was originally sponsored by a real estate developer, Seymour Durst, who wanted to make people aware of the rising public debt, which at the time was less than $3 trillion. The Global Public Debt Clock includes historical data on sovereign debt back to 1999 and forecasts through 2011. Data can be parsed to view country comparisons, including figures on public debt per capita, debt as a percent of GDP, and yearly rate of change.
The worst global economic storm since the 1930s may be beginning to clear, but another cloud already looms on the financial horizon: massive public debt. Across the rich world governments are borrowing vast amounts as the recession reduces tax revenue and spending mounts—on bail-outs, unemployment benefits and stimulus plans. New figures from economists at the IMF suggest that the public debt of the ten leading rich countries will rise from 78% of GDP in 2007 to 114% by 2014. These governments will then owe around $50,000 for every one of their citizens Not since the second world war have so many governments borrowed so much so quickly or, collectively, been so heavily in hock. And today’s debt surge, unlike the wartime one, will not be temporary. Even after the recession ends few rich countries will be running budgets tight enough to stop their debt from rising further. Worse, today’s borrowing binge is taking place just before a slow-motion budget-bust caused by the pension and health-care costs of a greying population. By 2050 a third of the rich world’s population will be over 60. The demographic bill is likely to be ten times bigger than the fiscal cost of the financial crisis.
Astute readers will observe that for a number of countries, such as Congo, Greenland, and Mongolia, no data is provided. That is because the Economist Intelligence Unit does not currently track debt figures for these nations. The data for the clock is available for download in a spreadsheet. We invite any interested individual to provide us with sourced data on these countries and we will include it in a future update to the clock. Forecasts change frequently, of course, and updated data will be fed into the clock regularly.
Historical data were sourced from finance ministries and central banks. For purposes of this clock, public debt is defined as total debt (both local and foreign currency) owed by government to domestic residents, foreign nationals and multilateral institutions such as the IMF. This public debt is usually, but not exclusively, owed by central governments.
Greg Ip, US Economics Editor, is available for interviews about the Global Public Debt Clock either in-studio in New York or Washington DC, or from our ISDN line. For questions about the Global Public Debt Clock or to schedule an interview with Greg, please contact Nicole Lynch at