Global debt increased by $3.3 trillion in Q1 2022 to a new record of $305 trillion, as the world’s two largest economies, China and the US, continue lending, according to a recent report by the Institute of International Finance (IIF).
This also comes amid the economic slowdown due to Russia-Ukraine crisis.
While China and US’ debts rose by $2.5 trillion and $1.8 trillion, respectively, in the first quarter of 2022, the total debt in the Euro Area declined for the third consecutive quarter in Q1 2022.
The global debt-to-GDP ratio fell for the fourth consecutive quarter in Q1 2022, amid a surge in inflation.
"As the ripple effects of the Russia-Ukraine war continue to disrupt global economic activity, growth is expected to slow significantly this year, with adverse implications for debt dynamics," the report noted.
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