To read the full version of this content please select one of the options below:

US/EU household debt will be less contagious than 2007

Friday, August 23, 2019

Subject

Household indebtedness in advanced countries.

Significance

US household indebtedness has declined since 2007. The euro-area average is broadly unchanged, but while household debt has declined in most countries, it has increased strongly in others.

Impacts

  • The most immediate risk is the possibility of a sharper economic downturn jeopardising the ability to repay of the lowest-income households.
  • The burden of interest payments has fallen sharply over the last decade and will remain low, even in countries where indebtedness is high.
  • In the longer run, countries where most housing loans are at fixed rates will be at an advantage.
Expert Briefings Powered by Oxford Analytica
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.