He Global level debt level He continued on the rise and closed 2024 with a new record, reaching US $318.4 billion, according to a Report of the International Institute of Finance (IIF).
The impact was not uniform in all regions. While in emerging economies the debt went from 99.3 au $ s103.7 billion, in developed countries the growth was more moderate, increasing from 211.9 Au $ S214.3 billion.
Some nations increased their indebtedness more than others. In emerging markets, the main responsible for the increase were China, India, Saudi Arabia and Türkiye. For its part, In developed economies, the greatest increases were recorded in the United States, the United Kingdom, Canada and Sweden.
Significant increase in different sectors
By sectors, families increased their debt of 59.7 au $ 60.1 billion dollars, while companies raised their financing of 90 au $ S91.3 billion. However, governments were the ones who increased their indebtedness the most, from 90.8 au $ 95.3 billion. In the financial sector, there was also a slight increase, of 70.8 Au $ S71.4 billion.
The IIF report It underlines the sustained growth of public debt, which already exceeds US $ 95 billion, A significantly higher number than 70 billion registered before the pandemic in 2019. This indicates that, in just five years, governments have considerably increase their levels of indebtedness, which could represent future risks.
In addition, the Global Debt/GDP ratio increased after several years of stability. In 2024, it rose 1.5 percentage points, reaching 328% of world GDP, driven by slower economic growth and a slowdown in inflation.
Impact on credit costs
The IIF indicates that the global indebted rhythm slowed down in 2024 due to factors such as economic uncertainty, commercial and migratory policies of the United States, and the expectation that Federal Reserve (Fed) Keep interest rates for more time.
By 2025, The global debt is expected to continue increasing, although at a more moderate rate. With credit costs at high levels, many governments and companies will adopt a more cautious position in financing. It is estimated that world public debt will grow in another 5 billion dollars this year, with the United States, China, India, France and Brazil leading indebtedness.
In emerging markets, the trend will be similar. According to the IIF, these countries could broadcast up to US $ 8.2 billion in new debt. However, commercial tensions and the reduction of international financial assistance could generate challenges for some economies to the time to face your payment obligations.
Source: Ambito
