31.05.2024 11:20
Global debt has seen a significant increase after the pandemic, reaching record levels. The global debt, which rose by 1.3 trillion dollars in the first quarter of the year, reached 315 trillion dollars, renewing the record. While the United States became the most indebted country, Turkey is in a low-debt position among G20 countries.
Debt is increasing rapidly in the world after the pandemic. The total public debt of countries has reached three times the annual production. Global debt reached a record high of $315 trillion, increasing by $1.3 trillion in the first quarter of the year. During the same period, the debt-to-GDP ratio worldwide was calculated as 333 percent. While the United States is at the top in global debt, Turkey is in a relatively positive position among G20 countries.
According to the "Global Debt Monitor" report by the Institute of International Finance (IIF), the increase in global debt is mainly attributed to emerging markets. It was observed that the majority of debt accumulation in developing countries was concentrated in China, India, and Mexico during this period. In developed economies, debt increased primarily in the United States and Japan, followed by Ireland and Canada. The most significant decreases in debt were seen in Switzerland and Germany.
TURKEY AMONG COUNTRIES WITH THE LEAST PUBLIC DEBT
Among the G20 countries, the United States ranked first in debt with $34.7 trillion. China ranked second with $14.5 trillion, and Japan ranked third with $13.5 trillion. The rankings continued with the United Kingdom at $3.8 trillion, France at $3.7 trillion, Italy at $3.6 trillion, India at $3.3 trillion, Germany at $2.9 trillion, Canada at $2.3 trillion, Brazil at $2.1 trillion, Australia at $1.2 trillion, South Korea at $1.06 trillion, Mexico at $979 billion, Indonesia at $631 billion, Argentina at $609 billion, Turkey at $499.9 billion, Russia at $427 billion, Saudi Arabia at $362 billion, and South Africa at $270 billion.
HIGHEST DEBT-TO-GDP RATIO IN JAPAN
As of the first quarter of 2024, the total public debt of G20 countries exceeded $90 trillion. The debt-to-GDP ratio was calculated as 110 percent.
When considering the debt-to-GDP ratio of G20 countries, Japan ranked first with 299 percent. It was found that Japan could repay its debt with its production for three years. Italy ranked second with a debt-to-GDP ratio of 172 percent, followed by Canada with 129 percent. The other countries were France with 128 percent, the United States with 122 percent, the United Kingdom with 109 percent, Brazil with 106 percent, India with 96 percent, Argentina with 93 percent, China with 82 percent, Germany with 69 percent, Australia with 67 percent, South Africa with 67 percent, Mexico with 66 percent, South Korea with 57 percent, Indonesia with 46 percent, Turkey with 45 percent, Saudi Arabia with 34 percent, and Russia with 19 percent.
"YOU CANNOT CONSIDER TURKEY HIGHLY INDEBTED"
Meanwhile, Minister of Treasury and Finance Mehmet Şimşek stated at a program organized by the Finance Accountants Foundation that Turkey is not a highly indebted country. He noted that when looking at all debt elements, Turkey's total debt-to-GDP ratio is 110 percent. Minister Şimşek said, "High indebtedness is one of the factors that affect growth in the medium term. If you look at Turkey with all debt elements, you cannot consider it highly indebted. The ratio of Turkey's household debt, corporate and financial sector debt, and public debt to national income is below 110 percent. In similar countries, it is above 250 percent, and the world average is above 330 percent. Debt is not yet our speed limit. We have this advantage."