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

The Trader Harbor

Business

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
Why it seems like everyone you know is going on a cruise
next post
McDonald’s might never expand CosMc’s. But the spinoff could still pay dividends.

Related Posts

Fox streaming service to be called Fox One,...

May 13, 2025

Nvidia’s Jensen Huang is ‘dead wrong’ about quantum...

January 9, 2025

Super Micro’s $50 billion stock collapse underscores risk...

November 2, 2024

Father and son fraudsters sentenced in case of...

May 14, 2025

Procter & Gamble to cut 7,000 jobs as...

June 15, 2025

Streaming overtakes cable and broadcast as the most-watched...

June 19, 2025

Major retailers are backtracking on self-checkout

July 5, 2024

Chevy Bolt owners to receive settlement checks after...

May 20, 2024

People are earning more from side gigs and...

July 11, 2024

Fed Chair Powell says there has been a...

April 17, 2024

    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

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

      July 22, 2025
    • Harvard, Trump battle for billions in federal funds as judge weighs next steps

      July 22, 2025
    • Congressional Republicans face bruising battle to avoid government shutdown

      July 22, 2025
    • Iran seeks China, Russia help to stall UN sanctions ahead of nuclear talks with Europeans

      July 22, 2025
    • Obama-era officials mum on allegations of ‘manufactured’ intelligence launching Trump-Russia probe

      July 22, 2025
    • Hunter Biden special counsel got ‘one resume’ from DOJ to help prosecute president’s son

      July 22, 2025

    Categories

    • Business (1,299)
    • Politics (4,050)
    • Stocks (1,536)
    • Uncategorized (45)
    • World News (1,292)
    • 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