15:15 GMT01 August 2021
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    China’s economic slowdown between 2017 and 2018 reportedly added significantly to a sustained increase in global debt last year, a figure that will most likely grow in the months to come.

    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.

    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.


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