duty worldwide increased in the first quarter to 305 trillion. dollars, while higher debt service costs raise concerns about the debt burden of the financial system, according to the Institute of International Finance (IIF).

World debt increased by 8.3 trillion. dollars for the first three months of the year compared to the corresponding period last year, in particular reaching 304.9 trillion. dollars, the highest since the first quarter of 2022 and the second highest for the quarter.

“Global debt is currently $45 trillion. dollars higher than before the pandemic, and it is expected to continue to grow at a rapid pace,” the IIF said in a quarterly report. After peaking around 360% in 2021, the debt-to-GDP ratio has stabilized around 335%, higher than pre-pandemic levels.

OUR aging population and rising health care costs continue to put pressure on government spending. At the same time, geopolitical pressures are expected to increase defense spending in the medium term, the IIF notes. The report also focuses on the impact of rapid growth interest rates on bank balance sheets.

“Despite the recent collapse of the bank in USA are not a systemic problem, the fear of infection has led to a large-scale outflow of deposits from regional banksThe IIF is concerned that tightening lending conditions among smaller banks could hurt some businesses and households. “Given the role of regional banks in lending, concerns about their liquidity could lead to a sharp reduction in lending to some sectors of the economy.”

The IIF also highlights the growth in activity in the shadow banking system, which today represents more than 14% of financial markets, with much of the growth coming from the rapid expansion of investment funds in the US. The report also pays special attention to emerging markets, whose debt rose significantly in dollar terms in the first quarter, surpassing the $100 trillion mark for the first time. dollars. China, Mexico, Brazil, India and Türkiye showed the largest growth. However, some of the largest emerging markets have benefited from the relative weakness of the dollar, which has attracted investors to their local currency debt.