Global debt rose by $8.3 trillion in the first quarter compared to the end of 2022, to $304.9 trillion. Global debt is now $45 trillion higher than it was before the Covid-19 pandemic and is expected to continue rising rapidly. The debt-to-GDP ratio hit a record 360% in 2021 and then stabilized at 335%, higher than before the pandemic.
Investors at the New York Stock Exchange (USA)
Aging populations and rising healthcare costs continue to weigh on spending, while "heightened geopolitical tensions are also expected to drive further increases in medium-term defence spending," the IIF said. The report was partly based on the impact of last year's rapid rate hikes on some banks' balance sheets. The IIF expressed concern that tighter lending by smaller banks would hurt some businesses and households. In mature markets, debt levels rose more sharply in countries such as Japan, the US, France and the UK.
Notably, the report found that 75% of emerging markets saw their dollar debt increase in the first quarter, with the overall figure surpassing $100 trillion for the first time. Debt of $100.7 trillion, or 250% of GDP, is up from $75 trillion in 2019. The data showed that China, Mexico, Brazil, India and Türkiye saw the biggest increases.
Source link
Comment (0)