Global debt hits record of nearly $338 trillion, says IIF
Global debt hit record high of $337.7 trillion at end of Q2. China, France, US, Germany, UK and Japan record largest increases in debt levels in USD terms – IIF. EM debt increases by $3.4 trillion LONDON, Sept 25 (Reuters) – Global debt hit a record high of $337.7 trillion at the end of the second quarter, driven by easing global financial conditions, a softer U.S. dollar and a more accommodative stance from major central banks, a quarterly report showed on Thursday.
The Institute of International Finance, a financial services trade group, said that global debt rose over $21 trillion in the first half of the year to $337.7 trillion.
China, France, the United States, Germany, Britain, and Japan recorded the largest increases in debt levels in U.S. dollar terms, though some of that was due to a waning dollar, the IIF found.
The U.S. currency has weakened 9.75% since the start of the year against a basket of major trading partners.
GLOBAL DEBT SURGE COMPARABLE TO COVID-ERA INCREASE
“The scale of this increase was comparable to the surge seen in H2 2020, when pandemic-related policy responses drove an unprecedented buildup in global debt,” the IIF said in its Global Debt Monitor.
Looking at debt-to-GDP ratios – an indicator of the ability to repay debt by comparing to what is being produced – Canada, China, Saudi Arabia and Poland saw the sharpest increases. The ratio declined in Ireland, Japan, and Norway, the report found.
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