Global government debt set to soar to record $71 trillion this year

Global sovereign debt is expected to climb by 9.5% to a record $71.6 trillion in 2022, Report informs referring to CNBC.

In its second annual Sovereign Debt Index, published on April 6, British asset manager Janus Henderson projected a 9.5% rise in global government debt, driven primarily by the US, Japan and China but with the vast majority of countries expected to increase borrowing.

Global government debt jumped 7.8% in 2021 to $65.4 trillion as every country assessed saw borrowing increase, while debt servicing costs dropped to a record low of $1.01 trillion, an effective interest rate of just 1.6%, the report said.

However, debt servicing costs are set to rise significantly in 2022, climbing around 14.5% on a constant-currency basis to $1.16 trillion.