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Global Debt of $244 Trillion Nears Record Despite Faster Growth

Non-financial corporate debt nears record high of 92% of global GDP.

Global Debt of $244 Trillion Nears Record Despite Faster Growth
Pedestrians walk past a front end loader standing amid the rubble of a neighborhood being demolished in Chengdu, China. (Photographer: Qilai Shen/Bloomberg)

(Bloomberg) -- The world’s debt pile is hovering near a record at $244 trillion, which is more than three times the size of the global economy, according to an analysis by the Institute of International Finance.

The global debt-to-GDP ratio exceeded 318 percent in the third quarter of last year, despite a stronger pace of economic growth, according to a report by the Washington-based IIF released on Tuesday. That’s slightly below a record 320 percent of GDP in the same quarter of 2016. With interest rates rising globally, the International Monetary Fund has warned governments to rein in soaring levels of debt and rebuild buffers against future risks.

Global Debt of $244 Trillion Nears Record Despite Faster Growth

Key Insights

  • Total government debt exceeded $65 trillion in 2018, up from $37 trillion a decade ago, and rose faster in mature markets
  • Non-financial corporate debt rose to over $72 trillion last year, now near an all-time high of 92 percent of GDP
  • Household debt grew by over 30 percent to $46 trillion helped by strong growth in emerging markets, notably from China; though Czech Republic, India, Mexico, Korea, Malaysia and Chile all recorded more than 20 percent increases since 2016
  • Financial sector indebtedness rose to about $60 trillion, up 10 percent from a decade earlier

To contact the reporters on this story: Chibuike Oguh in Washington at coguh1@bloomberg.net;Alex Tanzi in Washington at atanzi@bloomberg.net

To contact the editors responsible for this story: Brendan Murray at brmurray@bloomberg.net, Sarah McGregor, Randall Woods

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