WASHINGTON: Global debt climbed to a record near US$353 trillion at the end of March, as borrowing in the United States and China pushed the total up by more than US$4.4 trillion in the first quarter, according to the latest Global Debt Monitor from the Institute of International Finance. The increase was the fastest quarterly rise since mid-2025 and marked the fifth straight quarter of growth, extending a run that had already lifted world debt to a record US$348 trillion at the end of 2025.
Measured against output, total debt stood at about 305% of global gross domestic product, broadly unchanged from the levels seen since 2023. The overall ratio masked diverging trends across regions. Debt in mature markets outside the two biggest economies edged lower, while debt in emerging markets excluding China rose to a record US$36.8 trillion, driven mainly by government borrowing. The figures pointed to continued pressure on public balance sheets even as some advanced economies showed more stable debt dynamics.
The United States was a main driver of the quarterly increase, with government borrowing accounting for much of the rise. In China, debt among non-financial corporate borrowers accelerated sharply at the start of the year and outpaced borrowing by the government, with state-owned firms accounting for much of that expansion. The report also noted continued growth in U.S. corporate bond markets, supported by artificial intelligence-related issuance and overseas inflows, adding to the broader increase in global borrowing across sovereign and corporate sectors.
Global Debt Burden Widens
The Institute of International Finance said international demand for Japanese and European government bonds strengthened in early 2026, while demand for U.S. Treasuries remained broadly stable. That pattern pointed to some diversification by global investors away from U.S. government debt, even though the report said there was no immediate risk to the roughly US$30 trillion Treasury market. The shift came alongside sharply different debt trends across major economies and another quarter of heavy sovereign borrowing.
The report contrasted rising debt pressure in the United States with debt ratios in the euro area and Japan that it said were edging down. Those differences came as governments worldwide continued to fund large fiscal needs and companies kept tapping capital markets. The latest reading also showed that the first-quarter increase came on top of the sharp buildup recorded in 2025, when global debt rose by about US$29 trillion over the year, underscoring how quickly borrowing has expanded across both developed and emerging economies.
Investor Demand Diverges
The new record highlights how debt growth remains concentrated in the world’s largest economies even as borrowing conditions vary widely elsewhere. Outside the United States and China, the picture was more mixed, with mature markets showing some easing while many emerging economies continued to add debt. The global total remained near historic highs as interest costs, refinancing needs and fiscal demands kept governments and companies active in bond markets and sustained a high level of issuance.
For policymakers and investors, the March data offered a snapshot of a world economy still carrying a heavier debt load than before the pandemic, with public borrowing playing a central role in the latest increase. The latest Global Debt Monitor did not identify an immediate market disruption, but it showed that the pace and composition of borrowing remain under close watch across major economies after another quarter of heavy issuance. – By Content Syndication Services.