€303 Trillion in Financial Commitments—Fueling Innovation and Economic Strength

The Institute of International Finance (IIF), in a recent report, says that global debt went up to €303.3 trillion by the end of 2024, mainly due to slow economic growth and increased borrowing. It means that growth was of €7 trillion from the past year, of which government debt alone went up to €95 trillion. The ratio of global debt to global GDP has now increased to around 328%. Of the rise in global debt, developing economies, namely China, India, Saudi Arabia, and Turkey, contributed a staggering 65%. The IIF also warned that the so-called bond vigilantes may punish those governments that run widening fiscal deficits and predicts that debt growth will stall in 2025 due to a cloudy outlook and high borrowing costs.

 

Source: Reuters