The Institute of International Finance revealed in a report issued by it, that the ratio of government debt in the UAE to the country's GDP increased from 31.9 percent in the second quarter of last year, to 37.5 percent at the end of the second quarter of this year, but the level of government debt in the country remains among the lowest globally, compared to a global average of 104.6 percent of GDP at the end of the second quarter of 2021.
The Global Debt Index report showed that the debt of financial institutions in the UAE, in turn, increased during the period from 51 percent of GDP to 56.4%, compared to a global average of 84.7 percent.
The debt of non-financial institutions rose from 82.3 to 85 percent of GDP, compared to a global average of 98.6 percent of GDP.
The value of financial obligations on families also increased from 23.6 percent of GDP in the second quarter of last year to 24.7 percent at the end of the second quarter of 2021. The global average at this level reaches 65.5 percent.
According to the report, the size of the global debt basically increased by adding 4.8 trillion dollars during the same period, to reach by the end of the second quarter of this year to 296 trillion dirhams. The sharpest rise was in emerging markets, where total debt rose from $87 trillion at the end of the second quarter of 2020 to $92 trillion at the end of the second quarter of this year.
Source (Emirati Gulf Newspaper, Edited)
