U.S. debt has been a topic for decades. But, when you talk about it as a whole, the worldwide debt has hit a new record of $233 trillion. WHOA!
The Institute of International Finance (IIF) published a report earlier this week, stating debt hit the record debt in the third quarter of 2017 — an 8% ($16.5 trillion) increase from where it was at the end of 2016.
In addition to the global debt, the private non-financial sector debt saw record highs as well, including countries such as Canada, France, Hong Kong, Korea, Switzerland, and Turkey.
The IIF speculates that an extended period of low-interest rates contributed to the latest findings, and will ultimately lead to the central banks taking preventative measures to tighten lending conditions.
“High debt levels could limit the pace and scale of policy tightening, with central banks proceeding cautiously in an effort to support growth,” Hung Tran, executive managing director for a group of IIF analysts, wrote in the report.
According to the United Nations, the world’s per capita debt stands at more than $30,000.