Global debt hits record high driven by government borrowing

(MENAFN) Global debt reached an unprecedented level of nearly $346 trillion in the third quarter of this year, driven primarily by government borrowing, according to reports.

The total debt increased by more than $26.4 trillion during the first three quarters, up from $327.5 trillion in the same period last year. The ratio of total debt to global gross domestic product (GDP) climbed to 310% during this period.

While debt growth was concentrated in the United States and China, the largest overall increases were seen in developed economies, where policy easing by major central banks accelerated borrowing. The total debt of advanced economies reached an estimated $230.6 trillion, compared with $115.1 trillion in developing countries.

Significant debt growth occurred in the US as well as in France, Germany, and the UK. Among developing nations, China was followed by Brazil, Russia, South Korea, Poland, and Mexico in terms of debt increases.

Most of the debt accumulation was in the public sector, with China and the US seeing the largest increases, followed by France, Italy, and Brazil. By category, household debt rose to $64 trillion, non-financial corporate debt reached $99.3 trillion, public debt climbed to $105.8 trillion, and debt held by financial institutions such as banks totaled $76.6 trillion.

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