Global debt has surpassed a staggering $313 trillion, with some nations facing growing difficulties in repaying their obligations, according to a recent study.
Debt Surges:
- Global debt surged by $15 trillion from Q4 2022 to Q4 2023, as reported by Reuters, citing the Institute of International Finance (IIF).
- Over the past decade, global debt has seen a significant increase, rising from $210 trillion to its current record level.
Mature Markets and Emerging Markets:
- Developed nations, led by the US, France, and Germany, contributed to a 2% reduction in the global debt-to-GDP ratio over the past year.
- However, emerging markets are experiencing fresh highs in their debt-to-GDP ratios, indicating potential challenges in debt repayment.
- India, Argentina, China, Russia, Malaysia, and South Africa are among the countries with the most significant increases in debt-to-GDP ratios.
Debt Sales and Geopolitical Risks:
- Debt sales in emerging markets are at an all-time high, reaching $47 billion in January 2023.
- The IIF predicts increased borrowing and investment activities in Europe and non-financial sector companies that drive the economy.
- Geopolitical tensions remain a structural market risk, and government deficits continue to exceed pre-pandemic levels.
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