Global sovereign debt to jump to $50 trillion - S&P Global

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By Reuters
Global sovereign debt to jump to $50 trillion - S&P Global
FILE PHOTO: The S&P Global logo is displayed on its offices in the financial district in New York City, U.S., December 13, 2018. REUTERS/Brendan McDermid   -  Copyright  BRENDAN MCDERMID(Reuters)

LONDON (Reuters) – Another jump in borrowing by governments will take the global mountain of sovereign debt to $50 trillion (£38 trillion) this year, ratings 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 percent on 2018.

“Some 70 percent, 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 percent 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 percent rise on last year having been partly exacerbated by exchange rate swings.

(Reporting by Marc Jones; editing by Helen Reid)