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WASHINGTON, Oct. 3 (Xinhua) -- The International Monetary Fund (IMF) on Tuesday warned that high household indebtedness could trigger a financial crisis in the medium term.

"An increase in household debt boosts growth in the short term but may give rise to macroeconomic and financial stability risks in the medium term," the IMF's Global Financial Stability Report October 2017 said.

Household debts in advanced and emerging economies continued to rise after the global financial crisis, it noted.

The median household debt-to-GDP ratio among emerging market economies increased from 15 percent in 2008 to 21 percent in 2016. Among advanced economies, the ratio increased from 52 percent to 63 percent over the same period.

The research found that economy will grow faster and unemployment will be lower in the short term when the household debt-to-GDP ratio increases. However over three to five years, higher growth in household debt could be associated with a greater probability of banking crisis.

It also found that the negative medium-term consequences of higher household debt are more pronounced for advanced economies than for emerging market economies, where household debt and credit market participation are lower.

The negative effects could be reinforced when countries have more open capital accounts and fixed exchange rates, and their financial systems are less developed.

The report said the negative effects from high household indebtedness could be mitigated if countries improve their financial regulation, reduce dependence on external financing, adopt flexible exchange rates, and lower income inequality.