Global Debt Reaches New Record of $313 Trillion

Global debt reached a new record of USD 313 trillion in 2023, following a decline of approximately USD 7 trillion in 2022, as it increased by more than USD 15 trillion. Approximately 55 percent of the increase in global debt originated from advanced economies, primarily driven by the United States, France, and Germany. In emerging markets, debt accumulation concentrated mainly in China, India, and Brazil. Total debt in advanced economies was calculated at USD 208.3 trillion last year, while debt in emerging markets stood at USD 104.6 trillion. When examining the distribution of debt, household debt rose to USD 59.3 trillion as of end-2023, non-financial corporate debt to USD 94.4 trillion, public debt to USD 89.9 trillion, and debt of financial institutions such as banks to USD 69.4 trillion.

Ratio to GDP declined for third consecutive year

The ratio of global debt to gross domestic product (GDP) declined for the third consecutive year, largely influenced by advanced economies. However, with moderating growth and inflation, the decline in the debt-to-GDP ratio slowed sharply in 2023. Global debt-to-GDP ratio fell to approximately 330 percent in 2023, down 2 percentage points. The decline in the debt-to-GDP ratio was particularly notable in advanced economies, especially due to European countries. Only Malta and Norway recorded an increase in the debt-to-GDP ratio among advanced economies. The debt-to-GDP ratio of emerging market countries reached a new record at 225 percent, with the largest increases seen in India, Argentina, China, Russia, Malaysia, and South Africa. Chile, Colombia, Turkey, and Poland recorded declines of approximately 10 percentage points in their debt-to-GDP ratios. Considering total ratios to GDP, as of the final quarter of last year, household debt declined from 62.6 percent to 61.5 percent, non-financial corporate debt from 96.2 percent to 95.6 percent, and financial sector debt from 78.8 percent to 77.4 percent, while public debt rose from 95.6 percent to 96.7 percent. In Turkey, when considering debt-to-GDP ratios, non-financial corporate debt declined from 54.8 percent to 49 percent in the final quarter of last year, public debt from 35.7 percent to 31.7 percent, and financial sector debt from 18.7 percent to 17.3 percent, while household debt increased from 11.3 percent to 11.6 percent. Source