The global debt size rises to more than 323 trillion dollars at the end of 2024

It seems that the global economy in 2025 is threatened with collapsing due to the unprecedented debt levels in countries, economic policies, inflation and geopolitical conflicts, which causes countries to financial distress, as the volume of global debt increased by more than 12 trillion dollars in the first three quarters of 2024 to exceed 323 trillion A dollar, according to the global “Yahoo Finance” website.

Crises in developing and developed countries

The advanced economies suffer from non -sustainable financial policies, while developing countries are struggling with the escape of capital and economic instability, according to The Vienu Mail.
At a time when countries face increasing gaps in wealth, inflationary pressures and political turmoil, many are wondering about the effectiveness of previous economic policies.
Meanwhile, increasing global tensions and military conflicts threaten to push the world to more chaos, which confirms the importance of pushing strongly towards diplomacy rather than war.

Global debt exacerbation: a time bomb

The most important main concerns about the height of debt are high interest payments, as countries with high levels of debt, especially the United States and Japan, are facing the difficulty in managing high interest payments.
Also, weak economic growth represents another threat, so the world’s largest economies grow barely at a rate of 1-2% annually, making debt payment more difficult.
Also, the low value of the currency is from the large threats as well, as many developing countries witness twice their currencies against the US dollar, which exacerbates the burdens of their external debt.
Also read: 80% increased in the number of international companies threatened with defaults on debt payment

Reducing credit rating

Reducing the credit rating works to several risks in the strength of the demand for countries and investment, as the “Fitch”, Moody’s and Standard & Poor’s agencies warned of possible discounts for the credit rating of the economies that fail to implement financial discipline.
Many of the economic problems we face from the policies that countries have pursued in the past decade stem. Instead of solving the problem of financial instability, excessive money printing, weak financial policies and excessive dependence on globalization led to economic disasters.

American debt is the biggest threat

The US government was involved in the wide -scale facilitation program in the period from 2008 to 2023, which led to the dumping of the markets with cheap funds.
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The interest rates between (2022-2025) aimed to reduce inflation, but made the debt payment unbearable, which increased the pressure on the government’s finance.

European Union: austerity and weak growth

European Union countries followed strict austerity measures after 2008, which led to a reduction in public investments.
Germany, France and Italy witnessed the slowdown in GDP growth, while debt levels remained high.
Experts say that the excessive dependence of the euro area on Russian energy made it vulnerable when the war broke out.

Another major crisis in Japan

In Japan, the “Abe” policy between the years (2012-2020) depended on government spending and cash facilitation, which led the debt to more than 270% of GDP. The high rates of aging between the population and the stagnation of wages have weakened the efforts of economic recovery.
The growing global borrowing costs (2023-2025) increased pressure on Japan’s finance.

Doubts about China’s economy

The growth in China was the result of the enlargement of the real estate bubble, as major real estate development companies such as “Evergrand” collapsed, which caused a financial crisis.
The “Safar Kovid” policies (2020-2023) also weakened the local demand, while Western commercial restrictions affected exports.
High debt levels and rescue of local governments were forced to reconsider their economic strategy.

Difficulty paying global debts

Many developing countries have borrowed large sums during the past decade, expected to obtain high returns on their investments, and the high global interest rates have increased the difficulty of paying debts for them.
Capital escape led to the deterioration of economic conditions in these countries, forcing them to take painful austerity measures.
In light of the failure of economic policies and debt exacerbation, global financial systems have become at risk.