Global Debt Hits New Record, and Is Expected to Keep Climbing
January 14, 2020
Low interest rates around the world have sparked a rush to borrow, resulting in unprecedented levels of debt across the globe.
A recent report from the Institute for International Finance found that total debt reached a record high of $253 trillion at the end of Q3 2019, driven primarily from borrowing by governments and corporations. Debt increased by nearly $3 trillion in Q3 alone.
More worrying is the rate at which debt is outpacing economic output. In Q4, the world’s debt accumulation was 322 percent more than total economic output.