The world’s interest bill is $13trn—and rising
We calculate who has been hit hardest by rising rates
After a relaxing 2010s, in which interest rates hardly budged, rising prices are putting central-bank officials to work. Indeed, policymakers have rarely been busier. In the first quarter of 2021, policy rates in a sample of 58 rich and emerging economies languished at an average of 2.6%. By the final quarter of 2022, this figure had jumped to 7.1%. Meanwhile, total debt in these countries stands at $298trn, or 342% of their combined gdp, up from $255trn, or 320% of gdp, before the covid-19 pandemic.
This article appeared in the Finance & economics section of the print edition under the headline “Time for the tab”
Finance & economics February 25th 2023
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From the February 25th 2023 edition
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