Global debt rose to a record level of around $353 trillion by the end of last March, according to the Institute of International Finance (IIF).

In its quarterly Global Debt Monitor report released on Wednesday, the institute said that US borrowing was among the main drivers behind the increase in global debt by more than $4.4 trillion during the first quarter of this year, marking the fastest rise since mid-2025 and the fifth consecutive quarterly increase.

The report also pointed to a sharp acceleration in debt levels at the start of the year among Chinese non-financial corporate borrowers, most of which are state-owned companies, with borrowing significantly exceeding that of the Chinese government.

The report noted that debt declined slightly in mature markets, while emerging markets, excluding China, recorded a modest increase to a record $36.8 trillion, driven by government borrowing.

The institute highlighted indications that investors are moving towards diversifying their investment portfolios, noting growing international demand for Japanese and European government bonds.

The report added that debt ratios in the eurozone and Japan are expected to follow a more moderate trajectory amid continued fiscal expansion, while the US corporate bond market continues to thrive, supported by artificial intelligence-related issuances and strong foreign inflows.

Meanwhile, reports said US federal debt held by the public has now officially exceeded 100% of GDP for the first time since 1946, reaching approximately 100.2% ($31.265 trillion). Total gross federal debt, which includes intragovernmental holdings, is higher—often cited above 120% — reflecting large, persistent annual deficits and an aging population.