Higher household debts and excessive liquidity are hampering the global economic recovery, and will likely cause the crisis to last for at least three more years, a report said Wednesday.
The report by the Samsung Economic Research Institute said household debts in major economies are still high, and companies are reluctant to increase spending on facilities.
Financial institutions continue to be weighed down by a pile of bad debts despite their financial soundness improving on the back of expansionary policies by major economies, it said.
The report said it will take more than three years for governments around the world to deal with the increased liquidity.
"Increased liquidity in major economies could cause higher inflation and asset bubbles. Due to lingering uncertainties, such excessive liquidity is not absorbed," it said.
The research institute said currency rows among major economies could also stymie a faster economic recovery.
Last month, Japan intervened in the currency market to weaken the yen, which sparked criticism from other major economies, including the U.S. They claimed Tokyo's actions will make it hard to ask China to make the yuan's exchange rate more flexible.