Another record has been registered in the world economy. According to international financial institutions, by the end of the second quarter of this year, the world debt reached 337.7 trillion US dollars for the first time in history. This was reported by Reuters.
Analysts note that soft conditions in global financial markets, the decline of the US dollar, as well as the accommodative policies of leading central banks, caused a sharp increase in the volume of debt. In just the first half of the year, world debt rose by more than 21 trillion dollars and set an absolute record.
According to the International Institute of Finance (IIF) report, the largest growth of debt in dollar terms was observed in China, France, the USA, Germany, the United Kingdom, and Japan. This situation is partly explained by the weakening of the dollar. Since the beginning of this year, the dollar has depreciated by almost 10 percent against the currencies of major trading partners.
“This growth is similar to the unprecedented accumulation of debt that occurred during the pandemic period as a result of government measures. Current growth figures have approached those levels,” the report says.
Analysis of the debt-to-GDP ratio also revealed interesting data. In Canada, China, Saudi Arabia, and Poland this index increased sharply. At the same time, in Ireland, Japan, and Norway a decline was observed.
Developing countries have also not remained outside of the debt burden. In total, during the second quarter they took an additional 3.4 trillion dollars, raising the overall debt volume above 109 trillion dollars.
According to IIF, the main reason for debt growth was the sharp increase in government debt. This situation is especially evident in the G7 countries and China.
It should be recalled that in 2024, the total world debt amounted to 251 trillion US dollars. Such a significant increase within one year has caused serious discussion and debate among economists.
Experts emphasize that such rapid growth of global debt will increase financial risks in the future. This may force the countries of the world to take even stricter measures to ensure economic stability.
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