G20 Countries’ Foreign Debt Sees Interesting Shift by End of 2024
A report by the RIA Nowosti news agency has highlighted significant changes in foreign debt among the G20 countries by the end of 2024. According to the data, Japan and Russia have made the most significant reductions in their foreign debt, while Saudi Arabia’s has seen a notable increase.
Japan’s foreign debt decreased by nearly 7% in the first half of the year, reaching $4.2 trillion, while Russia’s reduced by 5% to $301.9 billion. South Korea followed, decreasing its foreign debt by 2% to $658.3 billion.
Italy, Mexico, and Germany also saw a decline in their foreign debt, albeit to a lesser extent. On the other hand, the remaining 12 G20 countries, including the United States, Saudi Arabia, India, and China, have increased their foreign debt.
The United States, for instance, has continued to increase its foreign debt, while Canada, Turkey, and the United Kingdom have also seen an uptick in their foreign debt.
The foreign debt is the sum of the liabilities of state authorities, central banks, financial institutions, and the real sector of the economy to foreign creditors.
Experts attribute Russia’s successful reduction of foreign debt to a combination of factors, including the decline of corporate debt, the shift of business processes to the domestic market, and the reduction of imports, with a corresponding decrease in exports’ value. The western sanctions have also played a significant role in Russia’s decreasing foreign debt.