Global debt to touch US$ 277 trln by yr end

The Institute of International Finance said in a report on Wednesday that global debt has surged by US$15 trillion this year to US$ 272 trillion through September and is likely to touch US$ 277 trillion by the end of the year. It added that by the end of 2021, some US$ 7 trillion of emerging market bonds and syndicated loans will come due.

It noted that from a ratio of about 380% at the end of 2019, the share of developed markets’ debt escalated to 432% of GDP in the third quarter. Meanwhile, emerging market debt-to-GDP stood at nearly 250% in the third quarter, with China reaching 335%, and for the year the ratio is expected to reach about 365% of global GDP. Lebanon, China, Malaysia and Turkey have registered the biggest increases in non-financial sector debt ratios so far this year.

“There is significant uncertainty about how the global economy can deleverage in the future without significant adverse implications for economic activity,” the report observed.