Economic reports issued Wednesday revealed total global debt reached a record high exceeding $365 trillion, after rising over $10 trillion in the first half of 2026. This growth is primarily attributed to emerging markets, whose debts increased by $6.5 trillion,
surpassing $110 trillion, led by China. Conversely, debt accumulation in advanced economies saw a sharp slowdown. This overall increase is less than half of the $21 trillion added in the same period last year. Borrowing was negatively affected by rising interest
rates, increased debt service costs, soaring energy prices, and the conflict with Iran. Governments and non-financial corporations accounted for most of this rise, both sectors registering new record levels. Global debt stood at approximately 310% of GDP, a 25 percentage point
drop from its early 2021 peak. However, this largely reflects inflation's impact on boosting nominal GDP, not a genuine reduction in debt levels. This data coincides with a jump in US Treasury yields to multi-year highs, raising government refinancing costs.
