Global Debt Reaches Record High of $337.7 Trillion
The global debt has reached a record high of $337.7 trillion (€289.15 trillion) by the end of the second quarter, driven by more favorable financial conditions, a weakening US dollar, and more accommodative central bank policies, according to the quarterly report of the Institute of International Finance (IIF) published on Thursday. The IIF, whose members include central banks and private financial institutions, highlights in the report that global debt has increased by over $21 trillion in the first half of the year.
Countries with the Largest Increases in Debt
The countries with the largest increases in debt levels in US dollars are:
- China
- France
- United States
- Germany
- United Kingdom
- Japan
Although part of these increases can be attributed to the decline in the value of the US dollar, according to the IIF. Since the beginning of the year, the US dollar has lost 9.75% of its value against a basket of reference currencies.
Comparison to Previous Debt Increases
"The magnitude of this increase is comparable to that seen in the second half of 2020, when policy responses to the pandemic (COVID-19) led to an unprecedented increase in global debt," says the IIF in its Global Debt Monitor report.
