Global debt at record $307 trillion as government borrowing surges

Global debt has reached a record $307 trillion in the first half of the year.

As per a report by the Institute of International Finance (IIF), this surge in debt is attributed to significant borrowing by governments and financial institutions, Reuters reports.

The $10 trillion increase in debt over the first six months of 2023 brings the total to $307 trillion, representing a $100 trillion increase from a decade ago.

The IIF's Global Debt Monitor report indicates that over 80% of the debt accumulation occurred in mature markets, with the United States, Japan, the United Kingdom, and France experiencing the largest increases. In emerging markets, notable rises in debt were observed in China, India, and Brazil.

Contrary to the International Monetary Fund's (IMF) earlier report, which stated that global debt had decreased for two consecutive years to $235 trillion in the previous year, the IIF report highlights a continuing upward trend. The IMF emphasized that the global debt burden remained elevated, surpassing its already-high pre-pandemic level.