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Global debt hits record $233 trillion

The United Nations calculates the global population is 7.6 billion, suggesting the world's per capita debt is more than $30,000

Enda Curran | Bloomberg 

Debt, Loan
Debt. Photo: Bloomberg

rose to a record $233 trillion in the third quarter of 2017, more than $16 trillion higher from end-2016, according to an analysis by the Institute of Finance. Private non-financial sector debt hit all-time highs in Canada, France, Hong Kong, South Korea, Switzerland and Turkey.

At the same time, though, the ratio of debt-to-gross domestic product fell for the fourth consecutive quarter as economic growth accelerated. The ratio is now around 318 per cent, 3 percentage points below a high set in the third quarter of 2016, according to the IIF.

“A combination of factors including synchronised above-potential global growth, rising inflation (China, Turkey), and efforts to prevent a destabilising build-up of debt (China, Canada) have all contributed to the decline,” wrote in a note.

The calculates the global population is 7.6 billion, suggesting the world’s is more than $30,000.

The debt pile could end up acting as a brake on central banks trying to raise interest rates, given worries about the debt servicing capacity of highly indebted firms and government, the wrote.

First Published: Sun, January 07 2018. 01:36 IST