HYDERABAD: As per IIF’s latest Global Debt Monitor, 61-odd countries it monitored collectively borrowed $4.8 trillion between April and June, 2021, taking the total global debt pile to a near $296 trillion.
As a ratio of global debt-to-GDP, it translates to 353% in June quarter, from a record high of 362% in March quarter.
If countries maintain June quarter’s debt binge, global debt will likely breach the $300-trillion mark by end of September.
Interestingly, emerging markets have been on a borrowing spree all through 2020 and 2021, but borrowings touched a fresh high of $36 trillion during June quarter, driven by higher government borrowing.
And the rise in debt levels was the sharpest in China, which borrowed $3.5 trillion between April and June, taking its aggregate debt to about $92 trillion.
While the latest data for India wasn’t immediately available, as per the national debt clock, which tracks data in real time, public debt as a percentage of GDP stood at 82.57%.
According to IIF estimates, during the March quarter, household debt to GDP rose to 39%, up from 35% over last year, while general government debt to GDP shot up to 84.2% from 72.2%.
While non-financial corporates debt-to-GDP jumped 300 bps to 56.7%, financial sector’s fell to 3.6% from 4.1%.
Globally, household debt rose by $1.5 trillion in the first six months of 2021 to $55 trillion, according to IIF which noted that almost a third of the 61 countries considered for the study saw an increase in household debt during the first six months of calendar year 2021.
The good news is, the debt-to-GDP ratio declined for the first time over the past six quarters, with 51 countries witnessing a decline in debt-to-GDP levels on the back of a rebound in economic activity.
It may be recalled that in absolute numbers, during the March quarter, global debt fell for the first time in 10 quarters by $1.7 trillion to $289 trillion.
Emerging markets on borrowing spree
The rise in debt levels was the sharpest in China, which borrowed $3.5 trillion between April and June; Public debt as % of GDP stood at 82.57% in India, as per the national debt clock.