Is the world really drowning in debt?
Gross global debt reached US$365 trillion, or 311 per cent of global GDP , in the first half of 2026, according to the latest from the Institute for International Finance (IIF). Should we be worried? The IIF thinks so, pointing out that "Mature market governments now spend more on interest expense than the world invests in either AI, defence, or energy" and "Debt has become more a political issue than a macro-financial one — creating a vicious cycle between elections and short-term quick fixes, and a long-term vulnerability as the marginal utility of higher debt diminishes." What is still more striking, is that the IIF worries more about high-income than developing or emerging economies. Read More