Global debt reaches new record high of 250,000 billion dollars
Sunday, 17 November 2019
The global debt reached a new record high of 250,000 billion dollars in the first semester of 2019, according to the American International Finance Institute (IIF).
This new record represents 240% of the global GDP.
China and the United States are responsible for 60% of this new increase in the global debt.
The IIF warned that the global debt is growing faster than the global economy. Low interest rates make borrowing more tempting. In developed countries governments are mostly responsible for this increase, while in third-world countries it is mainly caused by (state) businesses.
The IIF’s report also highlights the vulnerability of countries like Turkey, Mexico and Chili, which have accumulated a lot of currency debt.