The Global Debt Monitor said rising interest rates, higher debt financing costs, increasing energy prices and the Iran conflict were among the factors behind the increase. Global debt growth was above its five-year average.
According to the IIF, debt in emerging markets increased by $6.5 trillion during the six-month period, with China recording the largest increase among emerging economies.
The Global Debt Monitor said the United States, France, the United Kingdom and Japan are facing challenges from persistent fiscal deficits and high interest payments. In advanced economies, interest payments, AI, defence and energy spending remained above revenue.
The Institute of International Finance said interest costs for major advanced economies are at their highest level in 18 years. It said inflation makes the debt-to-GDP ratio appear stable, but financial risks are actually increasing.
