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Amount of global debt in 2018 increased by $ 3.3 trillion, to $ 243 trillion, or up to 317% of world GDP, experts of the Institute of International Finance calculated. A year earlier, the increase in debt was noticeably large - plus $ 21 trillion. The entire increase in the figure for 2018 came in the first quarter: according to its results, the size of the debt was at a historic peak - $ 248 trillion. This was followed by a correction, including increase in borrowing rates against the background of tightening the monetary policy of the US Federal Reserve. Most of all, in 2018, household debt increased by $ 1 trillion (to $ 46.2 trillion). The governments and non-financial sector increased the load by $ 800 million (to $ 64.5 trillion and $ 72 trillion, respectively), the financial sector grew by $ 600 million (to $ 59.8 trillion).
In emerging markets, debt growth has slowed sharply and amounted to about $ 1 trillion, which is only a quarter of the average size of the increase in load observed in 2013–2017 (in relation to GDP, the indicator has not changed much, reaching 212% of GDP). Liabilities in foreign currency remained at the level of $ 5.3 trillion. However, due to the weakening of the national currency against the US dollar, servicing such a debt became more expensive.
Many international experts, including the IMF are concerned about China. There, the total size of the burden remained at 290% of GDP. The authorities' fight against shadow banking resulted in a reduction in the burden of the non-financial sector by 5 percentage points (pp), and now IIF estimates it at 157% of GDP. This figure is one of the largest in the world. The household and government load, by contrast, rose by almost 3 points, to 51.2% and 49.2% of GDP, respectively.
In developed markets, the ratio of debt to GDP remained at 390%. In Japan, France and Australia, this figure increased, while Ireland, the Netherlands and Portugal decreased the load. In the United States, debt growth has been at its maximum since 2007 — plus $ 2.9 trillion, to $ 68 trillion. 40% of this increase was provided by the government, but the load grew slower than the economy, so the ratio to GDP fell to its lowest level since 2005 - to 326% of GDP. The authors separately indicate that the volume of household borrowing and the financial sector in the United States remains 20 and 45 pp below pre-crisis (74.8% and 78.2% of GDP). Corporate debt, however, is already close to this level (73 % of GDP), and the national debt by 30 pp exceeds it (100.2% of GDP) and will grow further as a result of the American tax reform and the increased volume of government spending.
source: iif.com
In emerging markets, debt growth has slowed sharply and amounted to about $ 1 trillion, which is only a quarter of the average size of the increase in load observed in 2013–2017 (in relation to GDP, the indicator has not changed much, reaching 212% of GDP). Liabilities in foreign currency remained at the level of $ 5.3 trillion. However, due to the weakening of the national currency against the US dollar, servicing such a debt became more expensive.
Many international experts, including the IMF are concerned about China. There, the total size of the burden remained at 290% of GDP. The authorities' fight against shadow banking resulted in a reduction in the burden of the non-financial sector by 5 percentage points (pp), and now IIF estimates it at 157% of GDP. This figure is one of the largest in the world. The household and government load, by contrast, rose by almost 3 points, to 51.2% and 49.2% of GDP, respectively.
In developed markets, the ratio of debt to GDP remained at 390%. In Japan, France and Australia, this figure increased, while Ireland, the Netherlands and Portugal decreased the load. In the United States, debt growth has been at its maximum since 2007 — plus $ 2.9 trillion, to $ 68 trillion. 40% of this increase was provided by the government, but the load grew slower than the economy, so the ratio to GDP fell to its lowest level since 2005 - to 326% of GDP. The authors separately indicate that the volume of household borrowing and the financial sector in the United States remains 20 and 45 pp below pre-crisis (74.8% and 78.2% of GDP). Corporate debt, however, is already close to this level (73 % of GDP), and the national debt by 30 pp exceeds it (100.2% of GDP) and will grow further as a result of the American tax reform and the increased volume of government spending.
source: iif.com
