The research was done by the Institute of International Finance.
Research reveals how the world’s debt piled up to $244 trillion
Research has revealed that the world’s debt has reached $244 trillion.
The IIF's President and Chief Executive Officer, Timothy Adams
The debt recorded is said to be more than three times the size of the global economy.
In the third quarter, the global debt-to-GDP ratio exceeded 318 per cent despite a stronger pace of economic growth. This is slightly below a record 320 per cent of GDP in the same quarter of 2016.
The report said that with the interest rates rising globally, the International Monetary Fund has warned governments to rein in soaring levels of debt and rebuild buffers against future risks.
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It further said the total government debt exceeded $65 trillion in 2018. This was an increase from $37 trillion which was recorded a decade ago and rose faster in mature markets.
The non-financial corporate debt also rose to over $72 trillion last year, now near an all-time high of 92 per cent of GDP
The report further said the household debt grew by over 30 per cent to $46 trillion. This according to the report helped by strong growth in emerging markets. This market was noted to be China.
Countries such as the Czech Republic, India, Mexico, Korea, Malaysia and Chile all recorded more than 20 per cent increases since 2016.
The financial sector also had a rise in its indebtedness of about $60 trillion, up 10 per cent from a decade earlier.
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This according to the report will decline the economic growth globally.
However, Africa is projected to experience a stable economy as its growth is expected to accelerate to 3.4 per cent in 2019.
The growth will be due to the current oil productions some countries on the continent is exploiting.
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