Global debt hit a record high of over USD 250 trillion in the first half of this year, led by a surge in borrowings in the U.S. and China, according to a new report, CNBC writes.
The report, released by the International Institute of Finance (IIF) on Thursday, showed that global debt surged by USD 7.5 trillion in the first six months of 2019. The IIF said the overall number hit USD 250.9 trillion at the end of this period, and will exceed USD 255 trillion by the end of 2019.
EM debt also hit a new record of USD 71.4 trillion (220% of GDP), the IIF said in the report.
The IIF cites the record-low interest rates and the deepening of global bond markets as the reasons for the rise in debt levels.
The IMF warned that almost 40% of the corporate debt in major economies was at risk of default in the event of another global economic downturn.