Global debt hits record

Baku. 5 January. REPORT.AZ/ Global debt up to a record $ 233 trillion in the third quarter of 2017, more than $ 16 trillion higher from late 2016. 

Report informs referring to the Bloomberg, an analysis by the Institute of International Finance (IIF). 

Private non-financial sector debt hit all-time highs in Canada, France, Hong Kong, South Korea, Switzerland and Turkey.

At the same time, though, the ratio of debt-to-gross domestic product fell for the fourth consecutive quarter as economic growth accelerated. The ratio is now around 318%, 3 percentage points below a high set in the third quarter of 2016, according to the IIF.

"A combination of factors including synchronized above-potential global growth, rising inflation (China, Turkey), and efforts to prevent a destabilizing build-up of debt (China, Canada) have all contributed to the decline," IIF analysts wrote.

Yet the debt pile could act as a brake on central banks trying to raise interest rates, given worries about the debt servicing capacity of highly indebted firms and government, the IIF analysts write.