Global debt has surpassed the threshold of 365 trillion dollars in a scenario marked by the increase in state deficits and financial costs, according to the latest report from the Institute of International Finance (IIF).
The organisation warns that the combination of large budget imbalances and higher interest expenses has trapped governments in a "vicious circle", with no political will observed to correct the drift.
The report published this week highlights that powers such as the United States, Japan, France, and the United Kingdom face fiscal challenges traditionally linked to emerging markets, with interest costs already surpassing global spending on defence, artificial intelligence, and clean technologies.
To make matters worse, the OECD estimates that governments and companies will face the need to refinance no less than 29 trillion dollars this very year, just as financing costs remain elevated.