{"id":62698,"date":"2022-05-20T07:01:27","date_gmt":"2022-05-20T12:01:27","guid":{"rendered":"https:\/\/olduvai.ca\/?p=62698"},"modified":"2022-05-20T07:01:27","modified_gmt":"2022-05-20T12:01:27","slug":"china-u-s-lead-rise-in-global-debt-to-record-high-305-trillion-iif","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=62698","title":{"rendered":"China, U.S. lead rise in global debt to record high $305 trillion – IIF"},"content":{"rendered":"
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China, U.S. lead rise in global debt to record high $305 trillion – IIF<\/a><\/h3>\n<\/div>\n
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A view of the city skyline in Shanghai, China February 24, 2022. Picture taken February 24, 2022. REUTERS\/Aly Song<\/p>\n<\/div>\n

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NEW YORK, May 18 (Reuters) – The world’s two largest economies borrowed the most in the first quarter as global debt rose to a record above $305 trillion, while the overall debt-to-output ratio declined, data from the Institute of International Finance showed on Wednesday.<\/p>\n

China’s debt increased by $2.5 trillion over the first quarter and the United States added $1.5 trillion, the data showed, while total debt in the euro zone declined for a third consecutive quarter.<\/p>\n

The analysis showed many countries, both emerging and developed, are entering a monetary tightening cycle -led by the U.S. Federal Reserve- with high levels of dollar denominated debt.<\/p>\n

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Global debt totals<\/figcaption><\/figure>\n

“As central banks move ahead with policy tightening to curb inflationary pressures, higher borrowing costs will exacerbate debt vulnerabilities,” the IIF report said.<\/p>\n

“The impact could be more severe for those emerging market borrowers that have a less diversified investor base.”<\/p>\n

The yield on the benchmark 10-year Treasury note has risen some 150 basis points so far this year and earlier this month hit its highest since 2018.<\/p>\n

SOVEREIGNS BEWARE<\/strong><\/p>\n

Corporate debt outside banks and government borrowing were the largest sources of the increase in borrowing, with debt outside the financial sector rising above $236 trillion, some $40 trillion higher than two years ago when the COVID-19 pandemic hit.<\/p>\n

Government debt has risen more slowly in the same period, but as borrowing costs rise sovereign balance sheets remain under pressure.<\/p>\n

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Government financing needs<\/figcaption><\/figure>\n

“With government financing needs still running well above the pre-pandemic levels, higher and more volatile commodity prices could force some countries to increase public spending even further to ward off social unrest,” said the IIF.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

China, U.S. lead rise in global debt to record high $305 trillion – IIF A view of the city skyline in Shanghai, China February 24, 2022. Picture taken February 24, 2022. REUTERS\/Aly Song NEW YORK, May 18 (Reuters) – The world’s two largest economies borrowed the most in the first quarter as global debt rose […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,195,683,32903],"class_list":["post-62698","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-debt","tag-reuters","tag-rodrigo-campos"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=62698"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62698\/revisions"}],"predecessor-version":[{"id":62699,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/62698\/revisions\/62699"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=62698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=62698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=62698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}