Government Debt: Germany & Netherlands VS. PIGS

This picture from the IMF Spring World Economic Outlook compares the Gross Government Debt (%GDP) of Germany and the Netherlands on the one hand and the PIGS on the other hand from 2010 until 2011.

Source: Google Data Explorer

Government Debt: Germany & Netherlands VS. PIGS

This picture from the IMF Spring World Economic Outlook compares the Gross Government  of Germany and the Netherlands on the one hand and the PIGS on the other hand.

Source: Google Data Explorer

The Economist:

IMF warns of high spending in Japan and United States, says Europe is on the right track for fiscal consolidation. 

The Economist made a graph with budget defitcit as a percentage of GDP and Gross Government Debt with projection from the IMF WEO Spring 2011. The Economist: 'On April 13th President Barack Obama is set to present yet another plan to reduce the country's mammoth deficit. America's economy is so large, and foreign appetite for greenbacks so voracious, that it seems inconceivable that it could suffer a fate similar to that of Portugal or Greece. The IMF's World Economic Outlook (WEO), published today, aims to shatter such complacency. America, its authors write, lacks a credible strategy for dealing with its growing public debt, and is expanding its budget deficit at a time when it should be shrinking. The chart below, drawn from the WEO, illustrates the size of the problem America faces.'

Source: The Economist

IMF WEO Spring 2011: Non-financial Corporations Debt

Non-financial Corporations Debt is the highest in Greece and the lowest in the United States as a percentage of Financial Assets.

Source: IMF

IMF WEO Spring 2011: Household debt

Household Debt-to-Income exploded in the United Kingdom. It has also grown a lot in the United States with the Euro Area also growing at a lower rate. Yet unlike Europe, the Household debt in the United States and the United Kingdom like Japan has been declining in recent years.

Source: IMF

IMF WEO Spring 2011: Fiscal Balance Adjustment

The IMF says the following about fiscal deficits in developing countries: 'For 2011, fiscal consolidation is expected to be modest in advanced economies. As a result, the adjustment required to achieve prudent debt levels by 2030 remains very large'.

The next graph gives the: 'cyclically adjusted primary balance adjustment needed to bring the debt ratio to 60 percent by 2030. For Japan, the scenario assumes a reduction in net debt to 80 percent of GDP; this corresponds to a gross debt target of about 200 percent of GDP.'

Source: IMF

The United States still has to do a lot of adjustment as you can see. Germany has already met the fiscal adjustment it has to do.

CA: Canada, DE: Germany, ES: Spain, FR: France, GB: United Kingdom, IT: Italy, JP:
Japan, US: United States.

IMF WEO Spring 2011: Unemployment

IMF WEO Spring 2011: Unemployment (latest unemployment rate minus six-year average before the crisis)

Unemployment rate modified for the 'normal' unemployment rate, which gives cyclical unemployment.

http://www.imf.org/external/pubs/ft/weo/2011/01/c1/fig1_19.pdf

AR: Argentina; AU: Australia; BR: Brazil; CA: Canada; CN: China; DE: Germany; EU: euro area; FR: France; GB: United Kingdom; ID: Indonesia; IT: Italy; JP: Japan; KR: Korea; MX: Mexico; RU: Russia; TR: Turkey; US: United States; ZA: South Africa.


Conclusion: the United States unemployment rate is relatively high.

IMF WEO Spring 2011: Asia Average Projected Real GDP Growth during 2011-12

IMF WEO Spring 2011: Asia Average Projected Real GDP Growth during 2011-12

http://www.imf.org/external/pubs/ft/weo/2011/01/c2/fig2_9.pdf

IMF WEO Spring 2011: Europe: Average Projected Real GDP Growth

Europe: Average Projected Real GDP Growth during 2011–12 (Percent)

http://www.imf.org/external/pubs/ft/weo/2011/01/c2/fig2_5.pdf

IMF WEO Spring 2011: Global Average Real World GDP in 2011 and 2012

The IMF published today it's World Economic Outlook Spring 2011. The next posts will be graphs from the paper.

Global Average Real World GDP in 2011 and 2012

http://www.imf.org/external/pubs/ft/weo/2011/01/c2/fig2_1.pdf