The Trader Harbor
  • Business
  • Politics
  • World News
  • Stocks
  • Business
  • Politics
  • World News
  • Stocks

The Trader Harbor

World News

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

by admin 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
Three Stock Ideas as S&P 500 Treads Water
next post
Why everyone is suddenly talking about Nvidia, the nearly $3 trillion-dollar company fueling the AI revolution

Related Posts

Ben & Jerry’s co-founder resigns, claiming parent company...

September 19, 2025

Open seating no more? Southwest CEO says airline...

April 27, 2024

Trump Media sues Brazil Supreme Court judge who...

February 20, 2025

Dockworkers on East and Gulf Coast to return...

October 5, 2024

Taco Bell to roll out AI drive-thru ordering...

August 2, 2024

In federal trial, Michael Kors says it’s harder...

September 18, 2024

Dow tumbles 475 points, S&P 500 suffers worst...

April 13, 2024

Nvidia passes Apple as world’s most valuable company

November 8, 2024

Gas prices are rising. Here’s how to stretch...

July 8, 2024

Chipotle downplays looming Trump tariffs, says only half...

February 7, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


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

    Latest

    • Ben & Jerry’s co-founder resigns, claiming parent company Unilever ‘silenced’ its campaigning

      September 22, 2025
    • The Real Drivers of This Market: AI, Semis & Robotics

      September 22, 2025
    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

      September 22, 2025
    • German officials condemn store owner who declared Jews banned from entry to protest Israel

      September 22, 2025
    • Trump honors Charlie Kirk’s legacy and describes him as a ‘martyr for American freedom’

      September 22, 2025
    • Charlie Kirk honored by 90K in one of the largest memorials for a private citizen

      September 22, 2025

    Categories

    • Business (1,389)
    • Politics (4,547)
    • Stocks (1,663)
    • Uncategorized (45)
    • World News (1,382)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheTraderHarbor, 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 © 2025 thetraderharbor.com | All Rights Reserved