Dollar’s Surge Shrinks World Debt Pile for First Time Since 2018
- Global debt slid by $5.5 trillion in second quarter, IIF says
- The world’s debt-to-GDP ratio rose slightly to 350% in span
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The global mountain of debt in US dollar terms shrunk for the first time since 2018 as the greenback surged and major central banks boosted borrowing costs, according to the Institute of International Finance.
Total debt decreased by about $5.5 trillion to $300 trillion in the second quarter, IIF data showed. While most of that drop occurred in developed economies, the US and Canada ended up seeing an uptick in debt levels. The decline was more limited in emerging markets, where the ratio of debt to gross domestic product climbed.