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Rising Interest Rates Highlight Worldwide Debt Burden

January 2017

January 05, 2017 | 11:25 | Dubai

With borrowing costs across mature and emerging markets on the rise in the wake of the U.S. presidential election, concerns about high global debt levels have returned to the fore. IIF in their quarterly global debt monitor highlight this:

  • Total global debt tops 325% of GDP; government debt levels rise sharply in 2016: Global debt across all sectors—household, general government, financial and non-financial corporate—increased more than $11 trillion in the first three quarters of 2016, exceeding $217 trillion (or 327% of global GDP).
  • Higher borrowing costs could raise concerns about debt sustainability
  • Total EM debt surpassed 217% of GDP in Q3 2016: Across emerging markets, the largest rise in total-debt-to-GDP has been seen in Saudi Arabia, Korea, and China—all up over 10 percentage points—while Russia, Hungary, and India recorded a slight decline in total debt ratios

Full report available at: Global Debt Monitor, IIF

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