Global Debt Crisis Soars to a Record High, Surpassing $318 Trillion.

Global Debt Crisis Soars to a Record High, Surpassing $318 Trillion.

Global Debt Hits Record High of $318 Trillion
The Institute of International Finance (IIF) reports that global debt has surged to a record $318 trillion in 2024, accounting for 328% of GDP amid a slowing global economy.

Although public debt growth this year is lower than the previous year, IIF projects an additional $5 trillion increase due to rising government spending, particularly in Europe.

Concerns Over Bond Markets and Emerging Economies
IIF warns that investors may sell off government bonds if they perceive fiscal policies as imprudent, potentially driving bond yields higher and increasing borrowing costs for governments.

Emerging markets—such as China, India, Saudi Arabia, and Turkey—contributed 65% of the global debt increase. These countries face challenges in repaying existing debts totaling $8.2 trillion, with 10% of the debt denominated in foreign currencies.

Strategies for Stability
IIF highlights the need to boost domestic revenue and attract private sector capital, particularly in nations facing economic and political uncertainty, such as Kenya and Romania. Strengthening financial stability is essential for long-term economic resilience.