Global debt has reached record levels of close to US$353 trillion (A$487.5 trillion), according to a new report by the Institute of International Finance.
The staggering figure was recorded at the end of March, by the IIF's quarterly Global Debt Monitor, which found that international investors were diversifying away from the United States.
Instead, it found a growing demand for both Japanese and European government bonds, which could push U.S. government debt onto an “unsustainable path”.
This debt was being mostly driven by government borrowing, said Emre Tiftik, director at the IIF for Global Markets and Policy, during a webinar to discuss the report.
"This highlights that there are some efforts by international investors diversifying away from U.S. Treasuries," said Tiftik.
Looking towards longer-term debt levels, the IIF predicted that pressure factors, such as defence spending increases, cybersecurity and AI expenditure and aging populations, would be driving up both government and corporate debts.
"The recent conflict in the Middle East is set to further intensify some of these pressures," Tiftik added.
