Global debt has reached a new record high, climbing to over $324 trillion in the first three months of the year, according to data from the Institute of International Finance (IIF). This increase represents a significant rise of around $7.5 trillion during the quarter.

China, France, and Germany were the largest contributors to the surge in global debt. In contrast, debt levels decreased in Canada, the UAE, and Turkey during the same period.

The IIF noted that the depreciation of the U.S. dollar against major trading partners contributed to the increase in the USD value of debt. However, the Q1 rise was more than quadruple the average quarterly increase of $1.7 trillion observed since the end of 2022.

The global debt-to-output ratio continued to slowly decrease, standing just above 325%. However, emerging markets saw their debt-to-output ratio hit a record high at 245%. Total debt in emerging markets rose by over $3.5 trillion in the first quarter, reaching a record high of more than $106 trillion, with China accounting for over $2 trillion of the increase.

China's government debt to GDP is currently at 93% and is expected to reach 100% before the end of the year.