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Home / Business / Economy

Global financial meltdown repair costs $14k per person

Tamsyn Parker
Tamsyn Parker
Business Editor·NZ Herald·
14 Sep, 2009 04:00 PMQuick Read
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The world's largest economies have spent US$10,000 ($14,300) per person in a bid to fix the financial meltdown of the past year, the BBC says.

Its calculation is based on IMF data given to G20 finance ministers which show the world's 20 biggest nations have spent a total of US$10
trillion.

The US and the UK were the biggest spenders but despite the crisis starting in the United States, it has cost the United Kingdom more per head.

The UK has spent 94 per cent of its GDP, equivalent to US$30,000 per person, while the US has spent only 25 per cent of its GDP to shore up its problems - a cost of US$10,000 per person.

The cost can also be seen in the private financial sector where companies have written off an estimated US$4 trillion - two-thirds of which came from the big international banks.

The BBC estimates this has wiped off about 10 years' worth of banking sector profits.

Overall the world economy is projected to shrink by 2.3 per cent this year, or nearly US$1 trillion.

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