10 Hrs
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الاقتصادية
Source: الاقتصادية
10 Hrsالاقتصادية
Source: الاقتصادية
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The expansion of digital lending and financial inclusion has led to mounting household debt in emerging markets. Household borrowing in India rose by about a third in a year, while around 100 million Chinese borrowers fell behind on personal-loan payments. Household debt in Thailand is approaching 90% of GDP, while Brazil faces even greater pressure: the central bank’s policy rate stands at 13.75%, interest rates on unsecured loans can reach 62%, and a record 29% of household disposable income goes toward debt payments. The effects have been felt by Brazilian fintech companies, with shares in Nu Holdings and Mercado Libre falling by about a quarter this year amid expectations of a period of stagflation, with inflation near 5%. Despite the risks posed by debt, core banking systems appear resilient thanks to oversight and reforms. Financial inclusion continues to support growth and poverty reduction, but also carries risks for consumers.
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