Consequences of a global debt crisis

What could come about as a result of a global debt crisis?

The economic problems of one country might pass on to others. However, these problems might also impact other aspects of the same country.

Inflation would make things more expensive. Oil, paper, or food crises may further develop.

Governments could begin to cut back on public spending.

Services that people need, such as public health, education and transportation, might face budget cuts.

In the worst-case scenario, banks could fail.

People could lose their money, and there would be a drastic reduction in economic growth.

It isn’t unlikely that all of this could lead to frustration and social unrest.

As seen in Sri Lanka and many other countries, political protests due to economic issues have toppled governments, leading to further economic instability.