The world\u00a0is mired\u00a0in $315 trillion of debt, according to a report from the Institute of International Finance.<\/p>\n
This global debt wave has been the\u00a0biggest, fastest and most wide-ranging rise in debt since World War II, coinciding with the Covid-19 pandemic.<\/p>\n
\u201cThis increase marks the second consecutive quarterly rise and was primarily driven by emerging markets, where debt surged to an unprecedented high of over $105 trillion\u2014$55 trillion more than a decade ago,\u201d\u00a0the IIF said in its\u00a0quarterly Global Debt Monitor report\u00a0released in May.<\/p>\n
Around two-thirds of the $315 trillion owed originates from mature economies, with Japan and the United States contributing the most to that debt pile.<\/p>\n
However, the debt-to-GDP ratio for mature economies \u2014\u00a0which is seen as a good indicator of a country\u2019s ability to service its debts \u2014 has been falling\u00a0in general.\u00a0<\/p>\n
On the other hand, emerging markets held $105 trillion in debt, but their debt-to-GDP ratio hit a new high of 257%, pushing the overall ratio up for the first time in three years.<\/p>\n
China, India and Mexico were the biggest contributors, the report noted.<\/p>\n
The IIF identified stubborn inflation, rising trade friction and geopolitical tensions as factors that could pose a significant risk to debt dynamics, \u201cputting upward pressure on global funding costs.\u201d<\/p>\n
\u201cWhile the health of household balance sheets should provide a cushion against \u2018higher for longer rates\u2019 in the near term, government budget deficits are still higher than pre-pandemic levels,\u201d the IIF added.<\/p>\n
Of the $315 trillion debt stock, household debt, which includes mortgages, credit cards and student debt,\u00a0among others, amounted to $59.1 trillion.<\/p>\n
Business debt, which corporations use to finance their operations and growth,\u00a0stood at $164.5 trillion, with the financial sector alone\u00a0making up $70.4 trillion of that amount. Public debt made up the rest at $91.4\u00a0trillion.<\/p>\n<\/p>\n
The world\u00a0is mired\u00a0in $315 trillion of debt, according to a report from the Institute of International Finance. This global debt wave has been the\u00a0biggest, fastest and most wide-ranging rise in debt since World War II, coinciding with the Covid-19 pandemic. \u201cThis increase marks the second consecutive quarterly rise and was primarily driven by emerging markets, […]<\/p>\n","protected":false},"author":0,"featured_media":5017,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5016","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5016","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=5016"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5016\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/5017"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=5016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=5016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=5016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}