RIYADH — Saudi Arabia’s finance minister said sovereign debt will be a major threat to markets in the near future, and expressed particular concern about low-income countries and what he called the rapidly increasing global fragmentation.
Mohamed Al said: “Globally, a serious and serious issue that we need to pay close attention to is the sovereign debt problem, especially in low-income and emerging countries, where they have no financial space to fall back on in case of market turmoil.” There is no such thing.” Jadaan spoke to CNBC’s Dan Murphy on Wednesday from the Future Investment Initiative in Riyadh.
“And I hope that a solution can be found between the IMF and the G20, and we are ready to support the global economy in the event of a shock in that area, but this is an area where we as world leaders are not sure what we need to do. This is an area where we need to keep an eye on how we respond.”Certainly that doesn’t surprise us. ”
Global public debt will reach a record $97 trillion in 2023, and the United Nations is calling for urgent reform of governments and financial systems around the world.
Saudi Arabia’s Finance Minister Mohammed Al-Jadaan attends a panel at the Future Investment Initiative (FII) annual conference in Riyadh, October 25, 2023 (Photo by Fayez Nureldine/AFP) (Photo by FAYEZ NURELDINE) /AFP, Getty Images)
Fayez Nureldin | AFP | Getty Images
In Africa in particular, the United Nations wrote in a June report, “Economies have weakened and debt burdens have increased in the wake of multiple global crises.” According to the report, the number of African countries with debt-to-GDP ratios above 60% more than quadrupled from 6 to 27 between 2013 and 2023.
Debt servicing has also become more expensive, hitting emerging market and developing countries harder.
“I think the painful truth is that many low-income countries currently have debt servicing that actually costs more than health care, education and climate protection combined,” Al-Jadaan said. said Wednesday.
“It’s not good for the world and we need to make sure we find a solution to that. Hopefully we will and we’re working together globally to get to that solution.” Masu.”
