Are we headed for a debt crisis? What will the week bring?

It seems that the markets are starting to ignore rampant inflation. Friday's sessions on European stock exchanges ended at relatively high levels, which could be perceived as a good omen. But is the situation so positive? There are many indications that European economies will have to deal with another problem. We are talking about the debt crisis. Last year, the debt of the largest economies in the Eurozone reached high levels. In addition, the PMI readings and other macroeconomic data do not inspire optimism, because there are many indications that the policy EBC associated with rising interest rates may continue. This, on the other hand, may mean serious debt servicing problems for some countries. Portugal, Spain and Italy seem to be in the worst situation. These economies are eager to support their budgets with further debt issues.

Debt can become a serious problem

Taking into account the current monetary policy in the Eurozone and the forecasts regarding the ratio of interest rates to GDP, we may witness problems with servicing the rising costs of debt.  It is worth emphasizing that not everywhere the situation is equally disturbing. Good examples include Germany and France. In the first case, it was possible to reduce debt servicing costs. On the other hand, in the second one, the debt itself is at a record level, but the costs of servicing remain at a relatively reasonable level.

We invite you to a meeting with the Chief Economist XTB dr Przemysław Kwiecień, in which we will ask ourselves - are we facing a debt crisis?

In today's video:

• Are we headed for a debt crisis?
• Inflation persists
• What next for interest rates?

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In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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