**The World Bank has issued a warning that the global debt has reached a record high of $303 trillion, equivalent to 350% of global GDP. This surge in debt is largely attributed to the COVID-19 pandemic and government borrowing to mitigate its economic impact.**.
The World Bank’s latest Global Economic Prospects report highlights that the global debt stock increased by $9 trillion in 2021, the largest one-year increase since 2010. Emerging market and developing economies (EMDEs) account for the majority of this increase, with their debt levels rising to $98 trillion..
**Advanced economies also contributed to the increase, with their debt levels reaching $67 trillion.**.
The report notes that the surge in debt is a result of governments borrowing heavily to support their economies during the pandemic. However, this has raised concerns about the sustainability of these debt levels, particularly in EMDEs, where high inflation and currency depreciation are eroding the value of their revenues..
**The World Bank warns that high debt levels can lead to financial instability, slow economic growth, and reduce governments’ ability to respond to future crises.**.
