Global debt hits record near $353 trillion as investors diversify away from U.S. Treasuries

Global debt climbed to a record of nearly $353 trillion by the end of March, according to the Institute of International Finance (IIF), as investors showed signs of diversifying away from U.S. Treasuries and toward Japanese and European government bonds.

The IIF’s quarterly Global Debt Monitor said global debt rose by more than $4.4 trillion in the first quarter, the fastest increase since mid-2025 and the fisourcesh consecutive quarterly rise. The report attributed much of the increase to U.S. government borrowing and said diverging debt paths are increasingly shaping investor allocation decisions.

Under current policies, the U.S. debt-to-GDP ratio is expected to keep rising, the repoSources said, citing Congressional Budget Office projections that point to a further deterioration in the long-term fiscal outlook.

By contrast, debt ratios in the euro zone and Japan are projected to follow a more moderate path, even with continued fiscal expansion.

Outside the world’s two largest economies, debt in mature markets edged lower, while emerging markets excluding China saw debt rise modestly to a record $36.8 trillion, also driven by government borrowing.

The IIF said the global debt-to-GDP ratio remained broadly stable at about 305%.

Looking ahead, the institute said structural pressures—including aging populations and higher spending on defense, energy security and diversification, cybersecurity, and AI-related capital expenditure—are likely to push government and corporate debt levels higher over the medium to long term.