Global debt hits record high in second quarter

The Institute of International Finance said that global debt reached a record level of $307 trillion in the second quarter, and the Institute of International Finance confirmed that the ratio of household debt to GDP in emerging markets is still higher than pre-Covid 19 levels.

The Institute of International Finance explained that the recent increase raised the ratio of global debt to GDP for the second consecutive quarter to 336%, and the debt ratio had been declining for seven quarters before 2023.

The Institute of International Finance added that “the sudden rise in inflation was the main factor behind the sharp decline in the debt ratio over the past two years,” and stressed, “As rising interest rates and rising debt levels push government interest expenditures higher, domestic debt pressures are expected to increase.”

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