$164 trillion in debt: Why the world is unprepared to tackle next recession

The IMF said countries should take decisive action to rebuild their fiscal buffers so they can increase spending during hard times

The world’s debt load has ballooned to a record $164 trillion, a trend that could make it harder for countries to respond to the next recession and pay off debts if financing conditions tighten, the International Monetary Fund said.

Global public and private debt swelled to 225 percent of global gross domestic product in 2016, the last year for which the IMF provided figures, the fund said Wednesday in its semi-annual Fiscal Monitor report. The previous peak was in 2009, according to the Washington-based fund.

“One hundred and sixty-four trillion is a huge number,” Vitor Gaspar, head of the IMF’s fiscal affairs