Australia Markets open in 7 hrs 14 mins

Global Debt Hits Record $233 Trillion

Enda Curran
Mixed denomination currency banknotes, including euros, bottom right, and sterling, left, are seen in a cash register at a Travelex store, operated by Apax Partners LLP, at City airport in London, U.K., on Monday, Nov. 28, 2011. Photographer: Simon Dawson

Global debt rose to a record $233 trillion in the third quarter of 2017, more than $16 trillion higher from end-2016, according to an analysis by the Institute of International Finance. Private non-financial sector debt hit all-time highs in Canada, France, Hong Kong, South Korea, Switzerland and Turkey.

At the same time, though, the ratio of debt-to-gross domestic product fell for the fourth consecutive quarter as economic growth accelerated. The ratio is now around 318 percent, 3 percentage points below a high set in the third quarter of 2016, according to the IIF.

More from Bloomberg.com: Trump Says Bannon ‘Lost His Mind’ After Leaving White House

"A combination of factors including synchronized above-potential global growth, rising inflation (China, Turkey), and efforts to prevent a destabilizing build-up of debt (China, Canada) have all contributed to the decline," IIF analysts wrote in a note.

Yet the debt pile could act as a brake on central banks trying to raise interest rates, given worries about the debt servicing capacity of highly indebted firms and government, the IIF analysts wrote.

More from Bloomberg.com

Read Global Debt Hits Record $233 Trillion on bloomberg.com