Global debt has climbed past $365 trillion, a figure that has prompted economists to warn of a potential “vicious cycle” that could threaten long‑term economic stability.
According to a report by CNBC, advanced economies are paying more in debt‑interest than the entire world spends on artificial intelligence, defence and clean‑technology initiatives combined.
The debt‑interest outlay, which covers both public and private borrowing, now exceeds the combined global budgets for AI research, military spending and green‑energy projects, underscoring a shift in fiscal priorities.
Economists have expressed concern that such high interest payments could crowd out investment and growth, creating a feedback loop that further inflates debt levels.
With debt levels already at historic highs, the trend raises questions about the long‑term sustainability of global fiscal policy and the capacity of governments to fund future priorities.
<small>Source: CNBC — read the original story there.</small>