Dynamics of public debt of the world's leading countries in 2023-2024 and its expected results
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Date
2024
Authors
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Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The article analyzes the dynamics of existing public debts for the current period of 2023 and 2024 in the
leading countries of the world and their possible negative consequences for the global economy.
The article notes that in the period 2018-2023, the largest absolute growth in the debt of the first group
was observed in countries such as the United States, Japan, France and the United Kingdom. In the second
group of countries, the bulk of the debt growth falls on China, India, Brazil and Mexico. The dynamics of the
world debt in relative terms (the share of debt in world GDP) is interesting. At the beginning of the last decade,
this figure exceeded 300% of GDP.
At the end of 2023, there were three leaders in the list of countries with the absolute value of public
debt – the United States, China and Japan. The United States was far ahead of everyone else: by the end of
2023, its public debt reached $ 35 trillion. The annual growth was 6%. China's public debt amounted to $
14.9 trillion, an increase of 8% compared to the previous year. Japan's public debt amounted to $10.6 trillion,
decreasing by 3% for the first time in many years. The total debt of the three countries at the end of
2023 was $63.0 trillion. At the end of last year, ten countries of the world (USA, China, Japan, Great Britain,
France, India, Germany, Italy, Canada, Brazil) accounted for about 85% of the world's public debt, and the
rest of the 168 countries of the world accounted for about 15%. Interest expenses are growing rapidly, but
budget revenues are not keeping up with them. As a result, in June 2024, the United States spent more than
30% of its budget revenues on paying interest on the government debt. Debt servicing has already exceeded
defense spending and has become the main item in the US federal budget. Such a ~record~, which at first
glance concerns only the United States, made the whole world nervous. America is rapidly moving towards a
sovereign default, which will cause a global financial and economic catastrophe, since many countries of the
world are creditors of the US state.
Description
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Keywords
Citation
IX International Scientific Conference: "Challenges of Globalization in Economics and Business", Proceedings , Tbilisi, 2024, pp. 383-398