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Global debt hits all time high of $233trn

Globe-Global-World-Map-700x450.jpgWorldwide debt has risen to a record $233trn (£172trn), latest figures show.

A rise of $16trn between the end of 2016 and the third quarter of last year has taken private non-financial sector debt to all time highs in countries from South Korea and Hong Kong to France and Turkey, according to an Institute of International Finance study quoted by Bloomberg.

However, as global growth improved, the ratio of debt to GDP ticked down by three percentage points. The ratio still stands at roughly 318 per cent.

The decline in the ratio was also helped by rising inflation and countries like China taking action to attempt to mitigate destabilising levels of debt, according to the IIF analysts.

However, the analysts also warn that debt levels could cause banks to shy away from further interest rate rises on fears about how firms and governments with significant debts could afford to service them.


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How platforms can solve their profitability pressures

Future success will be about adaptability; taking incremental steps to meet changing needs The last five years have seen the platform industry deal with huge legislative changes while facing political and economic uncertainty. At the same time, the move to a more digitally aware, 24/7 society has accelerated, with people expecting access to real time […]


Providers join working group to improve pension transfers

Royal London and Rothesay Life are among providers joining the Pensions Administration Standards Association’s transfers working group. The group has been set up by the industry body to look into the transfer process and what can be done to improve it. It will be chaired by PASA board director Gary Evans and examine the supply […]


Coutts to compensate Sipp investor over poor advice 

The Financial Ombudsman Service has ordered wealth manager Coutts & Company to pay compensation for advising a client to put £160,000 of their self-invested personal pension into an RBS Navigator investment bond. The upheld decision concerns Mr W who complains he did not fully understand the product he invested in and was unhappy with only […]


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