The terrible debt crisis looms over the whole world?
Government debt is increasing rapidly all over the world. In 2023, government debt reached 97 trillion US dollars. This is 5.6 trillion dollars more than in 2022. The special thing is that this debt is not increasing uniformly everywhere. government debt in developing countries is increasing at twice the speed of developed countries. The United Nations Conference on Trade and Development (UNCTAD) has released a report. According to this, the government debt of developing countries reached 29 trillion US dollars in 2023. This is 30% of the government debt of the whole world. This is much higher than the 16% of 2010 and it shows how fast the government debt is increasing in developing countries.
The debt burden is also different among developing countries. The countries of Asia and Oceania have more than 75% of this debt, while Latin America and the Caribbean countries have 17% and the countries of Africa have only 7% debt. Repaying this debt depends on the economic condition of the country. Countries that are least capable of repaying the debt often have to pay the highest interest.
First, understand what is meant by global debt.
Debt is the money that you borrow from someone and return it later. Global debt means how much debt is owed by governments, companies and people all over the world. This includes both government and private debt. government debt is the money that governments pay to domestic and foreign creditors. Usually, government debt is repaid by issuing bonds, treasury bills or by taking loans from international institutions.
Private debt is the money that companies and people give to banks, lenders and other financial institutions. This includes loans taken to buy a house, bonds issued by companies, loans taken for studies and credit card dues.
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