Have we reached peak emerging market debt? Emerging market debt is starting to fall as a proportion of economic output for the first time since 2011, potentially helping assuage some of the concerns over ballooning borrowing, writes Steven Johnson for the Financial Times. Total EM debt (including that of governments, nonfinancial companies and households) is believed will fall to 167.2% of GDP by December, down from a record 167.8% at the end of 2016, according to data from JPMorgan. The decline in debt ratios has been driven both by a decline in the rate of growth of private sector bank credit and an increase in nominal GDP growth, says Johnson. Doubts remain as to whether the improvement will continue. The Institute of International Finance has apparently raised a red flag over the rising tide of “stressed” emerging market companies that may struggle to repay their debts.