Global debt rose by about $7.5 trillion in the first three months of the year to a record $32.4 trillion, the bank trade group showed on Tuesday. China, France and Germany are the biggest contributors to global debt increase, while debt levels in Canada, the UAE and Turkey have fallen, the Institute for International Finance (IIF) said.
“Although the sharp depreciation of the dollar to major trading partners has contributed to an increase in the dollar value of debt, the first quarter rose four times the average quarterly increase of $1.7 trillion since the end of 2022,” IIF said in its Global Debt Monitor.
The global debt delivery ratio continues to slowly decline, with a distance of more than 325%. However, in emerging markets, the ratio hits a record 245%.
“Although the sharp depreciation of the dollar to major trading partners has contributed to an increase in the dollar value of debt, the first quarter rose four times the average quarterly increase of $1.7 trillion since the end of 2022,” IIF said in its Global Debt Monitor.
The global debt delivery ratio continues to slowly decline, with a distance of more than 325%. However, in emerging markets, the ratio hits a record 245%.
Total debt in emerging markets rose by $3.5 trillion in the first quarter to a record $1006 trillion. According to the IIF, China alone accounts for more than $2 trillion in growth. China's debt to GDP is 93%, and is expected to reach 100% by the end of the year.
