Value of Debt to skyrocket…….
Last year, the value of debt in frontier markets reached a new high of $3.6 trillion, driven by a strong increase in borrowing by the government and non-financial corporate sector.
Frontier markets increased their debt by $120 billion last year, while the national debt hit a record high of around $2 trillion. In its most recent Frontier Market Debt Monitor report, the Institute of International Finance (IIF) noted that borrowing by the non-financial corporate sector increased by about $1 trillion.
The IIF economists Emre Tiftik, Khadija Mahmood, and Raymond Aycock wrote in the report that despite the continuous accumulation of debt across sectors, “the pace of growth was relatively moderate last year — in fact, the slowest rate of increase since 2018”.