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Global debt hits new record of $253 trillion, to grow more this year

The world’s debt when compared against its total output hit another all-time high of over 322% in the third quarter of 2019 and it is set to keep growing, the Institute of International Finance (IIF) said in a new research report.

Total worldwide debt sat close to a record $253 trillion by the end of September, boosted mainly by higher borrowing by governments and non-financial corporates. This represented an increase from $250.9 trillion at the end of the second quarter of 2019.

“Spurred by low-interest rates and loose financial conditions, we estimate that total global debt will exceed $257 trillion in the first quarter of 2020, driven mainly by non-financial sector debt,” the IIF said in the report. The group is an association of financial institutions that came together in response to the debt crisis of the 1980s.

Record-low interest rates in countries around the globe have made it easier and more attractive for corporates, individuals and governments to borrow, and thus incur more debt.

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