32.1 C
Monday, June 24, 2024

Global debt hits all-time high – report

The figure is 50% higher than a decade ago, according to a leading trade body

The global debt pile soared by $10 trillion to a record high of $307 trillion in the first half of 2023, the Institute of International Finance (IIF) reported on Tuesday. It added that the US, UK, and Japan are among the markets driving the rise.

The high interest rate environment seen across most economies has sent the figure surging, making the current debt stock $100 trillion higher than it was a decade ago, according to the IIF.

“After witnessing declines of seven consecutive quarters, the global debt-to-GDP ratio has resumed its upward trajectory in the first two quarters of this year, now hovering around 336% – up from 334% in Q4 2022,” the report stated.

Over 80% of the debt buildup came from mature markets, with the US, Japan, the UK, and France registering the largest increases. In emerging markets, the rise has been more pronounced in China, India, and Brazil, the IIF said.

The report also warned that domestic government debt is at “alarming levels” in many emerging market countries. Meanwhile, “consumer debt burdens remain largely manageable in mature markets, allowing additional room for further central bank tightening should inflationary pressures persist,” the IIF stated.

For more stories on economy & finance visit RT’s business section

September 20, 2023 at 08:53PM

Most Popular Articles