Global debt recorded a significant increase in the first quarter of this year, amounting to about $7.5 trillion, reaching more than $324 trillion for the first time in history, according to data released by the Institute of International Finance (IIF) today, Tuesday.
The Institute highlighted that this rise in debt levels was primarily due to increased debts in some major economies such as China, France, and Germany, while some countries like Canada, the United Arab Emirates, and Turkey experienced a decline in their debt levels.
The Institute of International Finance reported in its periodic report "Global Debt Monitor" that the depreciation of the US dollar against major currencies of the United States' trading partners partly contributed to the increase in the dollar value of debts. However, the recent increase recorded during the first quarter exceeds by more than four times the quarterly average of $1.7 trillion since the end of 2022.
Despite this massive increase, the report showed a slow decline in the debt-to-GDP ratio globally, stabilizing at over 325%. However, this ratio reached a record level in emerging markets at 245%, reflecting potential economic challenges in those markets.
Regarding emerging markets, total debt in these markets rose by more than $3.5 trillion during the first quarter of the year, reaching over $106 trillion, which is a record level. China alone accounted for more than $2 trillion of this increase, with Chinese public debt reaching about 93% of GDP, and it is expected to exceed this figure to reach 100% before the end of the year.
