Global debt reached a record $312 trillion at the end of the second quarter of 2024, primarily due to rising borrowing in the United States (U.S.) and China, according to data from the Institute of International Finance (IIF).
In addition to China and the U.S., India, Russia and Sweden also increased their debt, while other European countries and Japan recorded a significant decline.
Global debt rose by $2.1 trillion in the first half of the year, and there is a possibility that the situation will further worsen due to interest rate cuts, Reuters reports.
The increase in borrowing is largely a consequence of the energy transition and the transition to renewable energy sources, according to the IIF.
The global debt-to-GDP ratio – an indicator of the ability to repay debt compared to what is produced – has stabilized at between 327 and 328 percent, the report said.
In emerging markets, the debt-to-GDP ratio reached a new high of 245 percent.
The authors of the report state that they are concerned about the apparent lack of political will to solve the debt problem – both in advanced economies and in developing markets, the Tanjug agency reported.
