The Smartest Investors Club
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Smartest Investors Club

Business

Global debt has grown to $315 trillion this year — here’s how we got here

by May 30, 2024
May 30, 2024
Global debt has grown to $315 trillion this year — here’s how we got here

The world is mired in $315 trillion of debt, according to a report from the Institute of International Finance.

This global debt wave has been the biggest, fastest and most wide-ranging rise in debt since World War II, coinciding with the Covid-19 pandemic.

“This 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—$55 trillion more than a decade ago,” the IIF said in its quarterly Global Debt Monitor report released in May.

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.

However, the debt-to-GDP ratio for mature economies — which is seen as a good indicator of a country’s ability to service its debts — has been falling in general. 

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.

China, India and Mexico were the biggest contributors, the report noted.

The IIF identified stubborn inflation, rising trade friction and geopolitical tensions as factors that could pose a significant risk to debt dynamics, “putting upward pressure on global funding costs.”

“While the health of household balance sheets should provide a cushion against ‘higher for longer rates’ in the near term, government budget deficits are still higher than pre-pandemic levels,” the IIF added.

Of the $315 trillion debt stock, household debt, which includes mortgages, credit cards and student debt, among others, amounted to $59.1 trillion.

Business debt, which corporations use to finance their operations and growth, stood at $164.5 trillion, with the financial sector alone making up $70.4 trillion of that amount. Public debt made up the rest at $91.4 trillion.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Pinnacle Closes Non-Brokered Private Placement
next post
Stellantis CEO says $25,000 Jeep EV coming to the U.S. ‘very soon’

You may also like

Trump Media jumps more than 9% after CEO...

The war on woke: How a gay rights...

Tesla settles lawsuit over Autopilot crash that killed...

Antiwork trends like ‘lazy girl jobs’ show how...

UAW loses Alabama union vote seen as bellwether...

Recalled cucumbers linked to at least 449 illnesses...

TurboTax maker barred from advertising ‘free’ services without...

Redbox set to close as DVD market withers...

A silver lining from high mortgage interest rates:...

UAW strike would show Biden and other leaders...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Turkish authorities escalate crackdown on opposition-run Istanbul municipality

    • Mexican band Grupo Firme cancels US show, says visas suspended by Trump administration

    • Iran condemns Austria over report on advanced nuclear weapons program

    • Michelle Obama facing backlash over claim about women’s reproductive health

    • Hamas agrees to release 10 more hostages

    Categories

    • Business (1,673)
    • Investing (4,999)
    • Politics (7,841)
    • World (6,357)
    • Terms & Conditions
    • Privacy Policy
    • About us

    Disclaimer: thesmartestinvestorsclub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 thesmartestinvestorsclub.com | All Rights Reserved


    Back To Top