Muhammad Karkouti writes: Debt is shrinking and anxiety remains

The good news is that global debt showed a slowdown in the pace of growth in the first half of this year, as it recorded $312 trillion, an increase of $2.1 trillion, compared to an increase of $8.4 trillion in the first half of last year.
But the bad news is that governments will not be able to control borrowing in the next phase, as debt accumulation is strongly restricted to government departments around the world, including developed countries. .
There is no doubt that government spending, which has increased in recent years, is contributing significantly to increasing debt burdens, especially due to the economic problems that the world has had since the beginning of the current decade.
Debt servicing is putting pressure on public finances, and has reached dangerous levels in developing countries that are close to the tipping point, which has damaged the overall global financial landscape. Total global debt compared to gross domestic product reached 328 percent, according to the Institute of International Finance, which continues to warn about the impact of debt accumulation on development in general. Despite some measures taken by donor countries to relieve the debt burden on developing countries and those defined as the poorest, there are still risks that, without measures to limit borrowing, or selling debt at high interest rates. In reality, it is not possible to get rid of these burdens without increasing the pace of growth and providing the necessary resources to the export and production sectors in countries suffering from huge debt burden.
Fears are rising at this particular level, as borrowing restrictions around the world have eased, more than two years after central banks followed a policy of monetary tightening, which helped to reducing global debt in the first half of this year. Personal loans are vulnerable to an increase in the short term ahead, which will require an increase in total debt at an international level, but sovereign debt remains the biggest risk-creating factor in the period ahead, especially in the absence of effective government guidelines to address them. debt levels. Most governments continue to borrow, for economic as well as political reasons, including those that borrow without any source of funding.