Global Debt Racing to 366% of Output Risks Next Crisis, S&P Warns
- Higher interest rates drives uptick in servicing costs: S&P
- Developed economies to drive increase amid slower growth
Photographer: Yuichiro Chino/Moment RF/Getty Images
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The world is at risk of a crisis as governments, households and financial institutions binge on debt, a habit that S&P Global Ratings warns could push overall leverage to 366% of global gross domestic product by 2030.
That would mark a sharp increase from the world’s $300 trillion pile of debt — or 349% of global GDP — as of June 2022, as leverage rises slightly faster for mature economies than emerging peers, S&P’s Terry Chan and Alexandra Dimitrijevic wrote in a report.