According to data from the International Finance Association, global debt surged by 10 trillion US dollars in the first half of this year, and the total size exceeded 365 trillion US dollars. Deficits and interest pressure surged in developed economies such as the US, Japan, and Europe. Last year, interest expenses exceeded 3.3 trillion US dollars, exceeding individual global investments in defense, AI, and clean energy. The International Finance Association warns that the debt problem has evolved into a political issue, spawning “a vicious cycle between the election cycle and short-term emergency policies; as the marginal utility of new debt diminishes, long-term fiscal vulnerability builds up.” The report added: “As the benchmark interest rate rises, interest expenses will skyrocket; the structural pressure brought about by health care and public pension spending remains largely unaddressed.” Meanwhile, International Monetary Fund Managing Director Georgieva said in an interview this week that various shocks to the global economy are “continuing to push up debt levels like steps and will never end.”

According to data from the International Finance Association, global debt surged by 10 trillion US dollars in the first half of this year, and the total size exceeded 365 trillion US dollars. Deficits and interest pressure surged in developed economies such as the US, Japan, and Europe. Last year, interest expenses exceeded 3.3 trillion US dollars, exceeding individual global investments in defense, AI, and clean energy. The International Finance Association warns that the debt problem has evolved into a political issue, spawning “a vicious cycle between the election cycle and short-term emergency policies; as the marginal utility of new debt diminishes, long-term fiscal vulnerability builds up.” The report added: “As the benchmark interest rate rises, interest expenses will skyrocket; the structural pressure brought about by health care and public pension spending remains largely unaddressed.” Meanwhile, International Monetary Fund Managing Director Georgieva said in an interview this week that various shocks to the global economy are “continuing to push up debt levels like steps and will never end.”