A recent report indicates that global debt reached a staggering US$348 trillion in 2025, marking the fastest annual growth rate since the pandemic, with significant contributions from the United States and China. The Institute of International Finance (IIF) highlighted that nearly US$29 trillion of new debt was generated in the previous year, driven primarily by extensive government borrowing, which accounted for over US$10 trillion of this increase. The combined efforts of major economies such as the US, China, and the euro zone were responsible for about three-quarters of the overall rise in debt.

The surge in debt is attributed to a new wave of capital expenditure termed 'super cycles', which are characterized by substantial investments in various sectors, including artificial intelligence and other transformative technologies. These investments are deemed essential for fostering economic growth and global competitiveness but raise concerns about long-term sustainability and financial stability. The increase in debt levels highlights the delicate balance that economies must maintain between investing in growth and managing rising liabilities.

As these key economies continue to pump resources into their fiscal strategies, the long-term implications for global economic health remain significant. Policymakers and economists are likely to debate the consequences of such soaring debt levels amid uncertainties in the global market, especially considering potential interest rate hikes and inflationary pressures that may arise from extensive governmental borrowing and spending.