In the first half of 2023, the stock of global debt rose to $10 trillion, bringing the total to a record high of $307 trillion. This data was reported on September 9, 2023, by the Institute of International Finance.
The high-interest rate environment witnessed in different economies has increased the figures, making the current debt reach $100 trillion more than what it recorded ten years ago.
The report also stated that the current global debt-to-GDP ratio is around 336%, which rose from 334% in Q4 2022. The debt-to-GDP ratio has experienced declines in seven consecutive quarters before resuming a positive trajectory in the first half of 2023.
Global inflation also stood as the main factor that led to the decline in debt ratio, and it also aided in the hike in borrowing costs and tighter lending standards.
On the other hand, big markets such as the U.K., the U.S., and France were responsible for more than 80% of the debt build-up in the first half of 2023, while countries like China, Brazil, and India saw an increase in emerging markets.
Read more: https://www.investingport.com/global-debt-hits-307-trillion-in-q2-signaling-economic-concerns/