Last updated: October 19, 2023 11:10 EDT | 2 minute read
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Global debt rose by $10 trillion in the first half of 2023, according to data released by the Institute of International Finance (IIF) on Tuesday, reigniting concerns about the impact on the global economy and the possibility of a financial crisis.
The report revealed that total debt has reached an unprecedented $307 trillion, an increase of $100 trillion over the past decade.
Advantage of mature markets in global debt growth
The main drivers of debt growth in the first half of this year were countries such as the US, UK, Japan and France, which contributed more than 80% of the increase.
Meanwhile, developing countries such as China, India and Brazil recorded the largest increases in debt among emerging markets.
The IIF expressed concern about the high levels of domestic government debt in many developing countries, saying that the current global financial system is not well equipped to deal with this situation.
The report suggests that market-based approaches can help manage unsustainable levels of domestic debt and help allocate resources for development and climate finance.