Global Debt Surpasses $320 Trillion as Risk Appetite Recovers - IIF

According to a report published by the Institute of International Finance (IIF), declining borrowing costs and increased risk appetite have led to a rise in the global debt stock by over $12 trillion in the first three quarters of 2024, reaching a new record of approximately $323 trillion. The IIF report suggests that substantial government budget deficits could cause national debts to increase by one-third by 2028, potentially approaching $130 trillion, which would heighten repayment risks worldwide. The report states that "as rising trade tensions and supply chain disruptions threaten global economic growth, the emergence of inflationary pressures, coupled with tightening public finances, increases the likelihood of mini-boom-bust cycles in government debt markets." As a result, the rising cost of borrowing could "intensify financial strains" and make debt management increasingly challenging.