Global debt hits record of $305 trln in Q1 2022

Global debt increased by $3.3 trillion in Q1 2022 to a new record of $305 trillion, as the world’s two largest economies, China and the US, continue lending, according to a recent report by the Institute of International Finance (IIF).

This also comes amid the economic slowdown due to Russia-Ukraine crisis.

While China and US’ debts rose by $2.5 trillion and $1.8 trillion, respectively, in the first quarter of 2022, the total debt in the Euro Area declined for the third consecutive quarter in Q1 2022.

The global debt-to-GDP ratio fell for the fourth consecutive quarter in Q1 2022, amid a surge in inflation.

"As the ripple effects of the Russia-Ukraine war continue to disrupt global economic activity, growth is expected to slow significantly this year, with adverse implications for debt dynamics," the report noted.