Regional divergences are growing more likely.
The global adjustment to higher borrowing costs is just beginning, and we think it will likely be more painful for some than others. Across developed economies, households and businesses are struggling under a mountain of debt that will, in many cases, only get heavier and more destabilizing in the year ahead. Private non-financial sector debt service ratios, % Exposures vary across countries, and structural differences complicate cross-national comparisons. But we think the United Kingdom bore the brunt of tightening early and could move through the low point of the economic cycle relatively quickly, given a lower starting point in private...