• Global debt reached a record high of nearly $353 trillion by the end of March, according to the Institute of International Finance (IIF) report.
  • Investors are signaling a shift away from US bonds, with growing demand for Japanese and European government bonds.
  • In the first quarter, global debt rose for the fifth consecutive quarter, by over $4.4 trillion, the fastest pace since mid-2025.
  • The main driver was US public borrowing, while in China borrowing by non-financial corporate borrowers accelerated.
  • Global debt stood at 305% of global economic output, with slight declines in developed markets and steady increases in emerging economies.
  • IIF forecasts further increases in government and corporate debt due to aging populations, rising defense spending, energy security, and AI.
  • The Middle East conflict will further amplify debt pressures.

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