HSBC CEO says global debt at turning point

Noel Quinn, CEO of HSBC

HSBC CEO Noel Quinn cautioned that the world is at a turning point concerning debt, as years of excessive government borrowing have rendered the current borrowing rate unsustainable.

At the Future Investment Initiative (FII) in Riyadh, Quinn warned that countries are at risk of a severe blow after allowing borrowing to inflate in the aftermath of the financial crisis and the pandemic.

“I'm worried about the imminent fiscal deficit turning point; it could hit swiftly, and I think several economies worldwide might reach a critical juncture,” he added

Describing Europe as a very low-growth economy, Quinn said: “The primary challenge for Europe is short to medium-term growth; while the continent might keep inflation in check, the issue is that wage inflation remains unchecked, particularly in the United Kingdom.”