S&P Global expects global sovereign debt to touch USD 50 trillion this year

Another jump in borrowing by governments will take the global mountain of sovereign debt to $50 trillion this year, rating agency S&P Global forecast on Thursday. The firm predicted sovereigns will borrow an equivalent of $7.78 trillion this year, which would be up 3.2 per cent in 2018.

"Some 70 per cent, or $5.5 trillion, of sovereigns' gross borrowing, will be to refinance maturing long-term debt, resulting in an estimated net borrowing requirement of about $2.3 trillion, or 2.6 per cent of the GDP of rated sovereigns," said S&P Global Ratings credit analyst Karen Vartapetov. The rise in the total debt stock to $50 trillion would be a 6 per cent rise on last year has been partly exacerbated by exchange rate swings.