This rate continues to increase and has reached a new record according to the latest study by the Institute of International Finance (IIF).
According to the IIF, it’s simple: the global cumulative debt now amounts to 192 trillion euros.
This has, according to the IIF, reached 324% of the global GDP, an unprecedented level that puts countries and companies in difficulty and could trigger a new crisis.
This represents 96 times the GDP of France, which slightly exceeds 2 trillion euros per year.
That’s the problem: the interest on this debt continues to rise while growth is not fully in sight, although it is showing some signs of recovery.
According to the IIF study, global debt is such that 1.44 trillion euros will need to be repaid or refinanced in 2018. This amount only concerns developing countries that do not benefit from the financial stability of countries like France and, in fact, only receive high interest rates from creditors.
Concerns are mounting: “Even with low global rates, many non-financial companies are heading towards difficulties in ensuring their debt service,” writes the IIF in its study.
The risk of a new major economic crisis, as the world is just emerging from the 2008 crisis, is therefore not ruled out, far from it.
