The amount of debt held in the world rose by the largest margin in two years during the first quarter of 2018, growing by $8 trillion during the first three months of the year, the Institute of International Finance reported Tuesday.
Global debt has now risen to more than $247 trillion, which is 318% of the world’s gross domestic product. Additionally, IIF found that global debt has risen by $30 trillion since just the fourth quarter of 2016.
“The pace is indeed a cause for concern,” IIF’s Executive Managing Director Hung Tran told Yahoo Finance during a call with reporters. “The problem with the pace and speed is if you borrow or if you lend very quickly … the quality of the credit tends to suffer.”
That means more governments, businesses and individuals have been borrowing that could have trouble paying the money back.
“The quality of creditworthiness has declined sharply,” Tran added.