Economics Explained

What Everyone Gets Wrong About Global Debt | Economics Explained

Jul 9, 2023
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INSIGHT

Global Debt Overview

  • Global debt sums over $300 trillion, averaging nearly three times global GDP.
  • This includes government, state, household, and corporate debt worldwide.
INSIGHT

Global Debt is Internal

  • Global debt differs from individual debt because the global economy essentially owes to itself.
  • Every debt liability is an asset on another balance sheet within the global economy.
INSIGHT

Global Debt vs Global Wealth

  • Total global debt is three times global GDP but total global assets are around $1 quadrillion.
  • This means net global worth after debt is approximately $700 trillion, indicating overall wealth.
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