World Global Debt of US $ 244 billion is Reaching a Record

World global debt is approaching a record of US $ 244 billion, more than three times the size of the world economy, according to an analysis conducted by the Institute of International Finance.

According to a report by the IIF (Institute of International Finance) based in Washington published on Tuesday, the global debt-GDP ratio exceeded 318 percent in the third quarter of last year, despite a rate of economic growth more strong. This figure is slightly lower than a record 320 percent of GDP in the same quarter of 2016. With the increase in interest rates worldwide, the International Monetary Fund has warned world governments to curb rising levels of interest. debt and accumulate reserves against future risks.

Key data

  • The total debt of governments exceeded US $ 65 billion in 2018, compared to US $ 37 billion ten years ago, and increased more rapidly in mature markets.
  • Non-financial corporate debt increased to more than US $ 72 billion last year, now close to a record high of 92 percent of GDP.
  • Family debt grew more than 30 percent to US $ 46 billion thanks to strong growth in emerging markets, especially in China; although the Czech Republic, India, Mexico, Korea, Malaysia and Chile recorded increases of more than 20 percent since 2016.
  • The indebtedness of the financial sector increased to around US $ 60 billion, 10 percent more than in the previous decade.