Global debt has set a new record of almost $253 trillion and is expected to increase even more before the end of this year, according to a new research report released by the Institute of International Finance.
The report said that as compared to its total output, the world’s debt hit all-time high of more than 322 percent in the third quarter of 2019.
“Spurred by low interest rates and loose financial conditions, we estimate that total global debt will exceed $257 trillion in the first quarter of 2020, driven mainly by non-financial sector debt [now approaching $200 trillion]”, the report argued.
NEW TODAY | Global debt reached a new all-time high of 322% of GDP in Q3 2019, with total debt nearing $253 trillion.— IIF (@IIF) January 13, 2020
Access the Global Debt Monitor report and database here: https://t.co/UyFYqwNRPx pic.twitter.com/jhEGoD1evz
Total debt across the household, government, financial and non-financial corporate sectors reportedly increased by some $9 trillion within the period.
Non-financial sector debt totalled $74.4 billion (up 4.3%), while government debt amounted to $69.2 billion (up 6.1%).
The survey pointed out that adding to global debt was the situation in China, where the 2017-18 economic slowdown resulted in the country’s growing debt last year.
At present, household debt in China stands at all-time high of 55 percent of the country's Gross Domestic Product, with the country’s total debt approaching 310 percent of GDP, one of the highest rates among developing countries.