Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 4-Oct-17
The International Monetary Fund has warned that policies which encourage consumers to increase their debt in the near-term have a negative effect on economic growth in the longer term. The IMF’s modelling concludes that a five per cent increase in the household debt-to-GDP ratio results in a 1.25 per cent fall in real GDP three years later. Australia’s household debt-to-income ratio now exceeds 190 per cent.
INTERNATIONAL MONETARY FUND, RESERVE BANK OF AUSTRALIA