Countries may face "growing challenges" in paying bills

Janak9955

Global debt has officially surpassed a historic high of $313 trillion, with some countries appearing increasingly at risk of being unable to repay, according to a new report. The International Institute of Finance (IIF) stated that from the fourth quarter of 2022 to the fourth quarter of 2023, global debt surged by $15 trillion. Adjusted for inflation, global debt totaled $210 trillion just a decade ago. The IIF noted that 55% of this growth came from "mature markets" led by the United States, France, and Germany. Although developed countries saw a 2% decrease in the ratio of global debt to GDP last year, the study suggests a troubling signal now blinking for some nations. "…readings from some emerging markets hit new highs, indicating a country's ability to repay debt. India, Argentina, China, Russia, Malaysia, and South Africa saw the largest increases, suggesting a growing potential challenge in debt repayment." Debt issuance in emerging markets is on the rise, hitting a historic high of $47 billion in January this year. The IIF believes this foreshadows more borrowing and investment activity from companies outside Europe and the financial sector driving economic growth. The organization also warned that geopolitical tensions remain a "structural market risk," and government deficits are still "well above" pre-pandemic levels. Don't miss a beat—subscribe to receive email alerts directly to your inbox.

Jatin255

All countries are heavily indebted.

Jiger955

Various challenges also seem quite stimulating.

Jafar224

What's scary about having debt? As long as you can make money.

Isha000

Growing day by day is inevitable.