Global debt surpasses $313 billion as countries face ‘potentially increasing challenge’ in ability to pay bills: Report
Global debt has officially surpassed a record high of $313 trillion, and a new study shows that some countries appear to be increasingly at risk of not being able to repay their debts.
According to the Institute for International Finance (IIF), global debt increased by $15 trillion from the fourth quarter of 2022 to the fourth quarter of 2023, according to Reuters.
Zooming out, just 10 years ago global debt totaled $210 trillion.
The IIF says 55% of this surge comes from “mature markets” led by the US, France and Germany.
And even though developed countries reduced their global debt-to-GDP ratio by 2% last year, ominous signals in the data are now flashing in several countries, according to the study.
“…in some emerging markets, measures of a country’s ability to repay its debt have reached new highs.
India, Argentina, China, Russia, Malaysia and South Africa recorded the largest increases, signaling potential increased difficulties in repaying debt.”
Debt sales in emerging markets are on the rise, reaching a record high of $47 billion in January this year.
IIF believes this is a precursor to more borrowing and investment activity among companies outside Europe and the financial sector that drives the economy.
The organization also warned that geopolitical tensions remain a “structural market risk” with government deficits well above pre-pandemic levels.
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Global debt surpasses $313,000,000,000,000 as countries face ‘potentially increasing challenges’ in ability to pay bills. The report first appeared in The Daily Hodl.
