Global Debt Rose to $258 Trillion in the First Quarter of 2020

Global debt rose to a record high of $258 trillion in the first quarter of the year, according to the Institute for International Finance (IIF).

The IIF, the body that represents global banks and financial institutions, said debt to GDP ratio rose by over 10 percent to reach a record 331 percent during the period under review.

“While increasing debt levels raise concerns about debt sustainability, over 92% of government debt is investment-grade,” the report said.

In emerging economies, the debt-to-GDP ratio rose to 230 percent and expanded by $700 million in value to $72.5 trillion due to the decline in emerging currencies against the US dollar.

While debt-to-GDP in developed economies grew from 380 percent in 2019 to 392 percent. The report noted that the U.S. debt accounted for half of the total $185 trillion debt in developed economies while debt outside the financial sector was high in Canada, France, Norway and the United States.

The report noted that debt across all sectors in China was on track to hit 335 percent of GDP following a surge from 302 percent to 318 percent in the first quarter.