That equates to approximately $36,700 of effective debt per person on the planet (based on the approximate worldwide population in 2021).
The increased indebtedness is largely attributed to the coronavirus crisis, which pushed global debt levels to a new highs and and as a result the Institute for International Finance has warned of the “attack of the debt tsunami” which can be viewed here.
It comes after governments across the world stepped up support for corporates and its citizens, and also due to corporates having to seek out alternative funding as activity came to a halt in the wake of Covid-19. Both events translated into higher borrowing and, therefore, higher levels of global indebtedness.
The issue is that larger debt levels put governments, companies and households at a higher risk during economic downturns as they are required to service that debt.
Read more about the Institute for International Finance findings here ... (click on the image below)