News Buzz

Global debt-GDP breaks record

The world has beaten the record for the highest ever debt-GDP ratio before the close of 2019, in fact in the first nine months itself. Comprising borrowings from households, governments and companies, global debt grew by US$ 9 trillion to nearly US$ 253 trillion during this period, according to the Institute of International Finance. The ratio of global debt-to-GDP was recorded at 322%, narrowly bettering the previous best in 2016. Developed markets like US and Europe accounted for over half this debt, with their debt-to-GDP ratio at 383% overall. In emerging markets, debt levels are lower, but they have increased faster in recent years led by China (310%), according to the IIF. “Spurred by low interest rates and loose financial conditions, we estimate that total global debt will exceed $257 trillion” in the first quarter of 2020, the IIF said.

 

SUBSCRIBE FOR OUR NEWS