The Institute of International Finance (IIF) has warned that the world is witnessing a fresh surge in debt levels, driven by rapid investment in artificial intelligence and clean energy technologies.
In its latest report, the IIF stated that global debt increased by 26 trillion dollars during the first nine months of 2025. This pushed the world’s total debt to an unprecedented 346 trillion dollars.
According to the report, borrowing by non-financial corporations is climbing fast and is now approaching 100 trillion dollars. The institute said the shift towards advanced technologies, coupled with the urgent global transition to cleaner energy, is accelerating debt accumulation and reshaping international financial markets.
The IIF also highlighted a sharp jump in household borrowing. Global household debt rose by 4 trillion dollars, reaching 64 trillion dollars by the end of the third quarter of 2025.
The institute warned that the rising debt burden may have long-term implications for governments, companies and consumers, especially if global interest rates remain high.
