Global Debt Surges to Unprecedented Levels

(MENAFN) Global indebtedness reached an all-time peak of nearly $346 trillion in the third quarter of this year, largely fueled by government borrowing, according to a report from the Institute of International Finance published on Tuesday.

The report indicates that overall global debt rose by over $26.4 trillion in the first three quarters of the year, up from $327.5 trillion during the same period last year.

During this timeframe, the ratio of total debt to global gross domestic product (GDP) hit 310%.

Although debt expansion remained focused in the US and China, the bulk of the overall increase originated from developed nations, where debt accumulation has intensified this year due to policy easing by key central banks.

In the third quarter, the total indebtedness of advanced economies was projected at $230.6 trillion, while emerging markets registered a combined debt of $115.1 trillion.

Notable increases in debt were observed in the US, as well as in France, Germany, and the UK.
Among developing nations, the largest surges in debt after China occurred in Brazil, Russia, South Korea, Poland, and Mexico.

The growth of global debt was primarily concentrated in the public sector, with the most substantial rises reported in China and the US, followed by France, Italy, and Brazil.

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