Global Debt Tops $365 Trillion as IIF Warns Rising Yields Fuel Vicious Cycle
Updated
Updated · CNBC · Sep 24
Global Debt Tops $365 Trillion as IIF Warns Rising Yields Fuel Vicious Cycle
3 articles · Updated · CNBC · Sep 24
Summary
$10 trillion in new borrowing pushed global debt above $365 trillion in the first half, with the IIF warning that higher servicing costs are becoming a major risk for governments.
Yields on medium- and long-term sovereign bonds in the U.S., Japan, France and the U.K. have climbed to their highest levels in more than a decade, reflecting investor unease over rates, energy costs, weak growth and heavy fiscal spending.
Advanced economies paid more than $3.3 trillion in interest on internationally traded government bonds last year, exceeding global spending on AI, defense and clean energy, according to the IIF.
The group said elections are encouraging short-term fiscal fixes that deepen long-term vulnerability, while healthcare and pension pressures remain largely unaddressed.
The OECD and IMF both urged fiscal consolidation and spending reforms, arguing governments need more sustainable debt paths to preserve room to respond to future shocks.