Crisis of adaptation

ACCORDING to the Institute of International Finance (IIF), global debt surged US$8.3 trillion (RM37.7 trillion) to hit US$305 trillion (RM1,385 trillion) at the end of the first quarter of 2023 (1Q23), and some US$45 trillion (RM204.4 trillion) higher than the pre-pandemic level.

With rising interest rates, all borrowers – governments, households and corporates – are saddled with a higher burden of servicing their respective debts.