The Unite States of Merica and China account for 50 per cent of the world’s collective debt of $235 trillion.
Together, the two countries account for $117.5 trillion of the debt, with $47.5 trillion and $70 trillion owed, respectively
This is according to data from the International Monetary Fund’s (IMF) global debt update report, titled “Global Debt Is Returning to its Rising Trend,” published on Wednesday.
The report was presented by three IMF officials, Vitor Gaspar, the Director of the Fiscal Affairs Department; Marcos Poplawski-Ribeiro, Deputy Director; and Jiae Yoo, an economist.
According to the report in one year, from 2021 to 2022, the global debt load escalated by $200 billion, pushing it to a mind-boggling 238 per cent of the world’s Gross Domestic Product (GDP).
The figure is nine points higher than the level recorded in 2019, signifying an alarming and concerning trend.
The IMF called attention to China’s status as the world’s largest contributor to non-financial corporate debt, with a substantial 28 per cent share globally.
The report also pointed out the disconcerting surge in debt levels in low-income developing countries over the past two decades and warned policymakers worldwide to remain steadfast and unwavering in their commitment to preserving debt sustainability.
