Will Changing Household Debt Levels Affect Global Consumption Patterns?

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Household debt is a major component of consumer spending in developed economies, which have the largest purchasing power per capita. Economic conditions, such as a recession and rising debt levels over time have a major impact on the cost of holding debt and the levels of consumption in the economy. Households tend to deleverage debt after economic downturns in order to maintain a sustainable and equilibrium level of debt. This has spending and demand implications for products, dependant of debt-driven sales such as automotives and appliances.

Table of Contents

Will Changing Household Debt Levels Affect Global Consumption Patterns?Demand Implications of Household Debt and Access to CreditHousehold Debt Implications for Consumption Growth




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