{"id":49236,"date":"2024-03-18T17:00:00","date_gmt":"2024-03-18T16:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=49236"},"modified":"2024-03-18T17:00:53","modified_gmt":"2024-03-18T16:00:53","slug":"record-high-debt-threatens-world-economy","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/record-high-debt-threatens-world-economy\/","title":{"rendered":"Record-high debt threatens the world economy"},"content":{"rendered":"
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Global debt reached a new record high in 2023, standing at 289.6 trillion euros. This upward trend has accelerated at an alarming rate over the last decade, calling into question its sustainability and representing a ticking time bomb for the world economy.<\/b><\/h3>\n

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Global household, corporate, bank, and government debt totalled 289.6 trillion euros at the end of 2023<\/b>, up from 275.4 trillion euros in 2022. A new record according to calculations by the International Institute of Finance (<\/span>IIF<\/span><\/a>). The total volume of sovereign debt and corporate bonds is almost 92 trillion euros, a figure similar to global GDP, while household debt has risen to 53.4 trillion euros.<\/span><\/p>\n

This will lead to <\/span>growing funding pressures, especially in emerging economies<\/b>, where the amount of corporate bonds maturing in the next three years represented 51% (EUR 4 trillion) of the total in 2023.<\/span><\/p>\n

This global fiscal deficit has been <\/span>spurred by the growth of debt in major economies,<\/b> especially that of the United States, which according to the <\/span>IMF<\/span><\/a> reached 123.3% of GDP in 2023 and will rise to 126.9% later this year. In turn, the debt of the Chinese economy grew to 83% of GDP in 2023, is expected to reach 87% in 2024 and to exceed 100% in 2027.<\/span><\/p>\n

The IMF forecasts that global public debt will rise by one percentage point of GDP each year over the medium term, and warns that at the projected rate <\/span>“global debt will reach 100% of GDP by the end of the decade”.<\/b> Revenue and expenditure gaps in national budgets are expected to add \u20ac4.9 trillion annually between 2024 and 2027.<\/span><\/p>\n