The Institute of International Finance reported in its Global Debt Monitor that global debt rose by $1.3 trillion in the first quarter of 2024, reaching a record high of over $315 trillion, which is 333% of global GDP. This increase marks the second consecutive quarterly rise and was primarily driven by emerging markets, where debt surged to an unprecedented level exceeding $105 trillion, representing an increase of $55 trillion compared to a decade ago.
The bulk of the accumulation of debt in emerging markets originated from China, India, and Mexico in the first quarter of 2024. Conversely, South Korea, Thailand, and Brazil experienced the largest declines in the total value of their debt in US dollars. According to the report, total debt levels in developed markets remained broadly stable in the first quarter, as declines in household and non-financial corporate debts offset the ongoing rise in government and financial sector debt. The overall increase was primarily concentrated in the United States and Japan, followed by Ireland and Canada, while significant declines were observed in Switzerland and Germany.
