AFP
Global debt has hit a new record of around $353 trillion, according to a new report by the Institute of International Finance.
The report also noted that some investors seem to be diversifying away from U.S. treasuries, and there is higher demand for Japanese and European government bonds.
“This highlights that there are some efforts by international investors diversifying away from U.S. Treasuries,” said Emre Tiftik, IIF director for Global Markets and policy during a webinar discussing the report, according to Reuters.
Tiftik went on to say that there is no “immediate risk” to the U.S. Treasury market, valued at about $30 million, but the long-term projections show it to be on an “unsustainable path.”
The report also noted that U.S. debt increase was one of the main global drivers, rising by more than $4.4 trillion in the first quarter. It was the fasters increase since mid-2025 and the fifth straight quarterly increase.
Chinese non-financial corporate borrowers also played a role, outpacing the country’s government.
Overall, global debt stood at 305% of the world’s economic output, a figure that has remained largely stable since 2023.
The report concluded by saying that debt levels are set to continue rising in the medium and long term as a result of structural pressures. They include aging populations, rising spending on defense and energy security, as well as AI-related capital expenditure.
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