The amount of global debt swelled to more than $100 trillion last year, according to the Swiss-based Bank for International Settlements (BIS), as governments borrowed to lift their economies out of recession and corporations took advantage of record low interest rates. The surge in debt is almost twice the gross domestic product of the United States.

According to the BIS, the global amount of outstanding debt was $70 trillion in 2007. The collapse of the U.S. subprime mortgage market and the bankruptcy of Lehman Brothers resulted in the worst global financial crisis since the Great Depression. Central banks responded by suppressing benchmark interest rates in an effort to spur economic growth.

The governments of nations currently have a total of $43 trillion outstanding in their domestic markets. That is 80% higher than what it was in 2007. The BIS report noted that markets and governments had withdrawn from globalization and cross-border transactions since the economic recession, which has led to overdependence on domestic markets.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.