Global debt reached a record level of $337.7 trillion by the end of the second quarter of this year, due to the easing of global monetary conditions, the weakening of the US dollar, and the accommodative policies of major central banks. This was reported by Reuters.
It is reported that in January, debt increased by more than $21 trillion in the first half of the year, reaching $337.7 trillion.
According to data from the International Institute of Finance (IIF), the largest debt increases in January were observed in China, France, the US, Germany, the UK, and Japan. This is partly explained by the weakening of the US dollar. Since the beginning of this year, the dollar has depreciated by 9.75% against the currencies of major trading partners.
"This growth is due to policy measures during the pandemic period, which led to an unprecedented accumulation of debt – bringing the figures close to those of the second half of 2020," the report states.
According to the debt-to-GDP ratio indicator, the sharpest increases were recorded in Canada, China, Saudi Arabia, and Poland. Conversely, this indicator decreased in Ireland, Japan, and Norway.
The total debt of developing countries increased by $3.4 trillion in the second quarter, exceeding $109 trillion.
The IIF emphasized that the main reason for the debt growth is the sharp increase in government debt, a situation particularly evident in G7 countries and China.
