Driven by emerging markets, global debt hits record $303T: Report

By Aysu Bicer

ANKARA (AA) – Driven by a sharp rise in emerging markets, the global debt hit an all-time high of $303 trillion last year, the Institute of International Finance said on Wednesday.

The figure posted an increase of more than $10 trillion compared to 2020, which saw a $292.6 trillion global debt heavily driven by COVID-19 impact on the global economy, the institute said in its Global Debt Monitor report.

Global debt-to-GDP ratios, however, eased as developed economies rebounded to around 350% last year, down from record 360% in 2020.

Household debt was $56.9 trillion by the end of 2021, debt belonging to non-financial companies was $88.8 trillion, public debt was $88.1 trillion, and debt belonging to financial companies such as banks was $69.8 trillion.

- China's debt rises to $60T

While the total debt of developed economies was $207.8 trillion in 2021, it stood at $95.7 trillion for emerging economies such as India, China, South Africa, Brazil, and Turkiye.

China's debt swelled $7 trillion for a sharp rise last year to $60 trillion.