RIYADH – Saudi Arabia’s finance minister says national debt is the main threat to markets in the near term, expressing particular concern about low-income countries and what he calls fast-growing global fragmentation.
“I think globally the serious issue we need to be concerned about is the sovereign debt issue, particularly in low-income countries and emerging economies, which don’t have the fiscal buffers to deal with market disruptions,” Mohammed Al-Jadan said on Wednesday. Riyadh Future Investment Initiative told CNBC’s Dan Murphy.
“Hopefully the IMF and the G20 can find solutions and we will be ready to support the world economy if there is a shock in this area, but as global leaders we need to focus on this area. Of course, this does not make us feel surprise.
Global public debt will reach record $97 trillion in 2023prompting the United Nations to call for urgent reforms to governments and financial systems around the world.
Saudi Arabia’s Finance Minister Mohammed al-Jadaan attends a panel discussion at the annual Future Investment Initiative (FII) conference in Riyadh on October 25, 2023. FAYEZ NURELDINE/AFP via Getty Images)
Fayez Noureddin | AFP | Getty Images
Particularly in Africa, the United Nations wrote in a report in June, “Economies are faltering after multiple global crises, resulting in even higher debt burdens.” Africa’s debt-to-GDP ratio exceeded 60% between 2013 and 2023 The number of countries has more than quadrupled, from 6 to 27. The report stated.
Debt servicing has also become more expensive, hitting emerging markets and developing countries harder.
“I think the painful truth is that many low-income countries’ current debt-servicing costs are actually higher than their health care, education and climate action combined,” Jardine said on Wednesday.
“This is not good for the world and we need to make sure we find a solution. Hopefully we will find a solution and we are working together globally to achieve that solution.”
About The Author
