The International Monetary Fund (IMF) announced this Wednesday that global debt fell in 2022, for the second consecutive year, but remains above the pre-pandemic level.
According to the latest update of the database, total debt increased to 238% of global Gross Domestic Product (GDP) in 2022, nine percentage points more than in 2019. Despite the drop recorded in the last two years, the IMF warned that debt “remains high” and that its sustainability is a concern.
“The authorities will have to be unwavering, in the coming years, in their commitment to preserving the debt sustainability“He highlighted in an article published this Wednesday. In turn, the private debtwhich includes that of families and non-financial corporations, fell 12 percentage points of GDP.
According to the IMF, China played a central role in the increase in global debt in recent decades, with its share of the debt of non-financial companies set at 28% (the highest in the world). This authority also indicated that more than half of developing countries are in over-indebtedness situation or in high risk. Therefore, he stressed that governments must adopt “urgent measures to help reduce debt vulnerabilities.”
Source: Observadora
