Surge in global debt creates growth, financing problems: IIF
Global debt, now at US$217 trillion, is largely the result of the availability of cheap money, which spurred borrowing
Tokyo
GLOBAL debt has reached US$217 trillion, or a record 325 per cent of world gross domestic product (GDP), raising concerns over the ability of some governments and business corporations to service their debts, given that interest rates are beginning to rise, said a key report on Thursday.
The report by the Institute of International Finance (IIF) noted that the surge in debt in recent years is largely the result of historically low interest rates, which have encouraged borrowing in expectation that the environment would remain benign. But a combination of rising rates and a strong dollar could spell trouble ahead.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
China says Hamas and Fatah express will for reconciliation
US consumer confidence at lowest level since 2022
Record gold prices boost recycling: WGC
Malaysian fast food operator QSR shelves IPO plans amid boycott campaign: sources
WHO warns of bird flu risk spreading to cows outside US
Sri Lanka’s key inflation rate rises to 1.5% in April