Both economic power houses owe $117.5 trillion. While China
owes $47.5 trillion, the US is world’s biggest debtor, owing $70 trillion.
In its global debt update, titled: Global Debt Is Returning
to its Rising Trend, the IMF said in a space of one year from 2021, global debt
position rose by $200 billion to $235 trillion.
This is equivalent of 238 per cent of the world’s Gross
Domestic Product (GDP), as of 2022.
According to the IMF, the debt level is nine percentage
points higher than in 2019.
But the IMF laid the weight of the rising cause of global
debt on developed nations, fingering US and China.
It said debt in low-income developing countries has risen
“significantly in the last two decades,” adding: “The pace of their increases
since the global financial crisis has created challenges and vulnerabilities.”
In the global debt update anchored by three senior officials
of the IMF – Vitor Gaspar, the Director of Fiscal Affairs Department; Marcos
Poplawski-Ribeiro, Deputy Director; and Jiae Yoo, an economist – the IMF warned
policymakers to be steadfast and “unwavering over the next few years in their
commitment to preserving debt sustainability”.
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