The world owes nearly 305 trillion USD
May 19, 2023
Beijing [China], May 19: The South China Morning Post on May 18 cited a report by the Institute of International Finance (IIF - US) showing that global debt in the first quarter of this year increased to nearly $305 trillion, of which emerging markets bore record debt. .
In the first quarter, global debt increased by $8.3 trillion compared to the end of 2022, to $304.9 trillion. Currently, global debt is $45 trillion higher than it was before the Covid-19 pandemic and is expected to continue to grow rapidly. The debt-to-GDP ratio hit a record 360% in 2021 and then stabilized at 335%, higher than it was before the pandemic.
The IIF experts said that an aging population and rising health costs continue to put spending pressure on countries, while "elevated geopolitical tensions are also expected to weigh on medium-term defense spending." increase". The report is partly based on the effect of last year's rapid rate hikes on the balance sheets of some banks. The IIF expressed concern that tightening lending by smaller banks would affect some businesses and households. In mature markets, debt levels have increased more than in countries such as Japan , the US, France and the UK.
Notably, the report found that 75% of emerging markets saw an increase in debt levels in dollar terms in the first quarter, with the overall figure surpassing $100 trillion for the first time. Debt levels of $100.700 billion, or 250% of GDP, are up from $75 trillion in 2019. Data shows that China, Mexico, Brazil, India and Turkey have the most increases.
Source: Thanh Nien Newspaper
