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
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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.
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