Global debt climbed to a record high of more than US$365 trillion in the first half of the year, with China and the United States accounting for the bulk of the increase, according to the latest findings by the Institute of International Finance (IIF) that come amid mounting concerns over global fiscal sustainability.
The figure reflects total debt across all four major borrowing sectors – government, household, financial and non-financial corporate – in more than 100 mature and emerging market economies, and it marks the sixth consecutive quarterly increase, according to the banking trade group’s latest “Global Debt Monitor” report, published on Wednesday.
Emre Tiftik, director of global markets and policy at the IIF, said the current debt wave differed from earlier ones, which were triggered by shocks such as the 2008 global financial crisis and the Covid-19 pandemic.