Washington: Global debt rose to a record level of around US$353 trillion by the end of last March, according to the Institute of International Finance (IIF).
According to Emirates News Agency, in its quarterly Global Debt Monitor report released on Wednesday, the institute stated that US borrowing was among the main drivers behind the increase in global debt by more than $4.4 trillion during the first quarter of this year. This marks the fastest rise since mid-2025 and the fifth consecutive quarterly increase.
The report also highlighted a sharp acceleration in debt levels at the start of the year among Chinese non-financial corporate borrowers, most of which are state-owned companies. Borrowing in this sector significantly exceeded that of the Chinese government during this period.
Furthermore, the report noted that debt declined slightly in mature markets, while emerging markets, excluding China, recorded a modest increase to a record US$36.8 trillion, driven primarily by government borrowing.
The institute also highlighted indications that investors are moving towards diversifying their investment portfolios, with growing international demand for Japanese and European government bonds being noted.
Lastly, the report projected that debt ratios in the eurozone and Japan are expected to follow a more moderate trajectory amid continued fiscal expansion. Meanwhile, the US corporate bond market continues to thrive, supported by artificial intelligence-related issuances and strong foreign inflows.