Global debt reaches record $353 Trillion in March

“The Institute of International Finance revealed that global debt reached a record high of around $353 trillion by the end of last March.In its quarterly Global Debt Monitor report, the institute said there were signs that investors were moving toward diversifying their investment portfolios, noting rising international demand for Japanese and European government bonds.The report noted that debt ratios in the euro area and Japan were expected to follow a more moderate path as fiscal expansion continues, while US corporate bonds continue to flourish, supported by artificial intelligence-related issuances and strong foreign inflows.The report said that US borrowing was one of the main drivers behind the increase in global debt by more than $4.4 trillion in the first quarter of this year, marking the fastest rise since mid-2025 and the fifth consecutive quarterly increase.It also pointed to a sharp acceleration in debt at the beginning of the year among Chinese non-financial corporate borrowers, most of which are state-owned enterprises, whose borrowing significantly exceeded that of the Chinese government itself.Outside the world's two largest economies, debt in mature markets declined slightly, while emerging markets excluding China recorded a modest increase, reaching a record $36.8 trillion, driven by government borrowing.

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