Global Economic Analysis Summary June 2012 (Part 2)

The debt burden of nations remains the top focus of investors. If we examine data from the previous two decades, the rate of debt growth in the U.K. is particularly striking, followed by that in Japan. Also notice how Spain’s debt soared after 2000. When compared to advanced nations, emerging nations entered the global collapse with a much lower level of debt, as seen in the second chart. This cushioned the severity of the economic devastation in emerging nations. Perhaps more important, emerging nations continue to add to their trade surplus and bank reserves. Thus, emerging nations remain on the leading edge of economic growth.