Illustrative photo. (Photo: THX/TTXVN)
China, France and Germany were the biggest contributors to the increase in global debt, while debt levels fell in Canada, the United Arab Emirates (UAE) and Türkiye, the IIF said.
According to the IIF report, total debt in emerging markets increased by more than 3.5 trillion USD in the first quarter of 2025, to a record high of more than 106,000 billion USD, of which China accounted for more than 2,000 billion USD.
Emerging market debt outside China also hit record highs, with Brazil, India and Poland seeing the biggest increases in the value of dollar-denominated debt.
According to the IIF, the weaker US dollar has acted as a buffer for developing economies , limiting the impact of increased volatility caused by US President Donald Trump's trade policies on emerging markets.
However, the organization warned that if policy uncertainty persists, fiscal policy will need to become more accommodative, especially in countries with close trade ties to the US.
In addition, the IIF is also concerned about the US debt level and the large financial demand from the world's leading economy, partly due to the tax cut move, which could affect the country's yields.
The Trump administration sees tariffs as a way to plug the budget hole left by planned tax cuts, but uncertainty around trade policy and uneven implementation have slowed business spending and weighed on economic growth./.
According to VNA
Source: https://baothanhhoa.vn/no-toan-cau-dat-muc-cao-ky-luc-lap-dinh-moi-hon-324-000-ty-usd-247922.htm
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