Global debt tops $365 trillion as economists sound alarm over 'vicious cycle'
Advanced economies are now paying more in debt‑service interest than the entire world collectively spends on artificial intelligence, defense and clean‑technology initiatives, underscoring the staggering scale of global indebtedness.
The sheer magnitude of these interest outlays highlights how the burden of servicing debt has eclipsed investment in sectors traditionally viewed as drivers of future growth and security, suggesting that fiscal resources are being diverted away from innovation and strategic priorities.
Economists warn that this imbalance could trigger a self‑reinforcing “vicious cycle,” where rising debt costs crowd out essential spending, potentially destabilising economies and limiting their capacity to address emerging challenges.
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