Daily Management Review

IIF: World debt reaches record $296T


World debt reaches an all-time high of $296 trillion in the second quarter of 2021, according to a report by the Institute of International Finance (IIF).

SomeDriftwood via flickr
SomeDriftwood via flickr
"World debt increased by $4.8 trillion in the second quarter of 2021, reaching a record high of $296 trillion," the organization writes.

At the same time, the organization points out that the global debt-to-GDP ratio dropped significantly in the second quarter. According to Bloomberg News Agency, citing the full IIF report, the total debt load was about 353% of GDP in the second quarter, down 9% from its peak in the first three months of 2021.

It is noted that in the first six months of this year, the contribution of households to global debt was 1.5 trillion. According to the agency, IIF attributes it to the situation in the U.S., China and Brazil, where spending levels have increased, particularly in the real estate market. Public and corporate debt increased by $1.3 trillion and $1.2 trillion, respectively, over the same period.

"The (economic) recovery is still not enough to bring debt levels to pre-pandemic levels in most cases," Bloomberg quoted Emre Tiftik, director of IIF's sustainability research division, as saying.

Excluding the financial sector, the organization's report indicates that only Mexico, Argentina, Denmark, Ireland and Lebanon have debt-to-GDP ratios below pre-pandemic levels.

source: bloomberg.com