Global Debt Hits Record High of $318 Trillion in 2023
The global debt has reached a record high of $318 trillion by the end of 2023, marking a $7 trillion increase compared to the previous year, according to the Institute of International Finance. This increase, the first since 2020, occurs in a context of slowing economic growth and rising budget pressures.
The global debt-to-GDP ratio has risen by 1.5 points to reach 328%, with public debt amounting to $95 trillion. The IIF anticipates a slowdown in debt growth this year, but highlights that calls for fiscal stimulus measures and increased military spending could still exacerbate indebtedness, particularly in Europe.
Emerging markets account for nearly 65% of this growth, with refinancing needs estimated at $8.2 trillion this year, 10% of which is in foreign currencies, increasing their vulnerability to geopolitical and economic tensions.
