Household debt in Turkey increased, corporate debt decreased

The Institute of International Finance (IIF) has published its Global Debt Monitor report. According to the report, the total global debt was calculated at 307.4 trillion dollars in the third quarter of this year.

The total global debt was recorded at 289 trillion dollars in the same period last year.

WHICH COUNTRIES HAD AN IMPACT?

The increase in the total global debt during this period was driven by significant debt growth in developed economies such as the US, Japan, France, and the UK, as well as in emerging markets such as China, India, Brazil, and Mexico.

When viewed by sector, the increase in debt levels was more pronounced in the public sector. Fiscal budget deficits in many developed and emerging economies continued to remain well above pre-pandemic levels.

It is estimated that global debt will reach 310 trillion dollars by the end of the year. The ratio of global debt to the total GDP of countries remained flat during this period at 333 percent.

While the total debt of developed economies rose to 206 trillion dollars, the total debt of emerging economies reached 101.3 trillion dollars. The ratio of total debt to GDP in emerging economies was recorded at 255 percent.

HOUSEHOLD DEBT IN TURKEY INCREASED

In Turkey, when considering the ratios of debt to GDP, in the third quarter of the year compared to the same quarter last year, household debt increased from 11.6 percent to 12.3 percent, while debt belonging to non-financial corporations fell from 60.1 percent to 53 percent, public debt fell from 37.1 percent to 33.8 percent, and debt belonging to financial corporations such as banks fell from 22.1 percent to 17.8 percent.

News Source: AA