The decline left outstanding global debt—including governments, households and corporations—at $290 trillion, equating to 343% of gross domestic product.
That’s how much the global debt stockpile shrank in the third quarter, according to a new report from the Institute of International Finance.
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Still, debt levels have been on the decline all year as soaring interest rates make it more difficult to borrow.
The IIF, a Washington-based organization representing the global financial industry, expects debt issuance to pick up next year as governments spend more to support their economies.
Emerging markets, meanwhile, are set to remain under pressure amid slowing economic growth, high inflation and the sharp rise in borrowing costs.
Debt-to-GDP for that group of economies climbed back to its all-time high of 254% by the end of September, according to the IIF.