Economy
Global Debt-to-GDP Ratio Hit an All-Time High Last Year
(Bloomberg) –The global debt-to-GDP ratio hit an all-time high of 322% in the third quarter of last year, according to a report released Monday by the Institute of International Finance.
Debt rose by almost $10 trillion to $252.6 trillion from a year earlier, said the Washington-based IIF, which is comprised of the world’s leading financial institutions. Debt from all sectors — ranging from household to government to corporate bonds — surged.
| Sector | Household | Non-Financial Corporates | Government | Financial | |
|---|---|---|---|---|---|
| Mature | $34.3 | $43.1 | $52.5 | $50.2 | |
| Emerging | $13.2 | $31.3 | $16.7 | $11.3 | |
| Total | $47.5 | $74.4 | $69.2 | $61.5 | |
| $ Trillions |
“While borrowing costs remain very low, many countries are finding a debt-driven growth model increasingly difficult to maintain,” said Sonja Gibbs, managing director of global policy initiatives at the institute. “High and rising debt-to-GDP ratios are making debt service and refinancing more challenging, and the 2020s are likely to see a greater incidence of debt distress and restructuring.”
The U.S. general government debt to GDP rose to about 102% of GDP, the IIF said, up 1.6 percentage points from a year earlier. Government debt in China grew at its fastest annual pace since 2009.
The institute expects “low interest rates and loose financial conditions,” to push total global debt to exceed $257 trillion the the first quarter of 2020.
Government debt-to-GDP hit a new high in the U.S. and Australia. Household debt-to-GDP reached a record high in Belgium, Finland, France, Lebanon, New Zealand, Nigeria, Norway, Sweden and Switzerland.
The IIF noted that a sharp rise in general government debt in Djibouti, Tajikistan, Mongolia Uzbekistan, the Maldives, Kenya and Pakistan is associated with direct loans from China.
Emerging market debt grew to $72.5 trillion from $66.1 trillion in the third quarter of 2018, according to the IIF, driven in large part by a jump in non-financial corporate borrowing. More than $19 trillion of syndicated loans and bonds will mature this year, with almost a third of that coming from emerging markets.
-
Banking & Finance2 months agoBank Muscat posts net profit of RO137.49 million in H1 2026
-
Magazines2 weeks agoOER Magazine July Edition 2026
-
Highlights3 weeks agoOERLive: Top 10 Mathematical Problems AI Has Solved or Transformed
-
Banking & Finance1 month agoOman Housing Bank launches digital waiting list for housing loans
-
Magazines2 weeks agoAl Mar’a Magazine July 2026
-
News4 weeks agoMade by Google 2026: Top 10 Biggest Launches You Need to Know – From the New Pixel 11 to a Life-Saving AI Watch
-
Alamaliktistaad Magazines2 weeks agoAlam Al-Iktisaad Magazine July 2026 Edition
-
Banking & Finance4 weeks agoOman Arab Bank CEO Sulaiman Al Harthi Retires as Ali Al Mani Is Named Successor
