A measure of debt across the globe rose in the first quarter to almost $305 trillion, and the rising cost to service that debt is triggering concern about the financial system’s leverage, a widely tracked study showed.
The Institute of International Finance, a financial services trade group, said on Wednesday global debt rose by $8.3 trillion in the first three months of this year compared to the end of 2022 to $304.9 trillion, the highest since the first quarter of last year and second-highest quarterly reading ever.
“Global debt is now $45 trillion higher than its pre-pandemic level and is expected to continue increasing rapidly,” said the IIF in its quarterly Global Debt Monitor.
After peaking near 360% in 2021 the debt-to-output ratio has stabilized around 335%, above pre-pandemic levels.
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