Global debt tops $365 trillion as economists sound alarm over 'vicious cycle'

Ever-higher costs to service mounting debt loads pose a major risk to governments around the world, economists have warned. Global debt rose by $10 trillion in the first half of the year to top $365 trillion, according to research published by the Institute of International Finance on Wednesday. State debts are rising as yields on medium- and long-term government bonds issued by a slew of the world's biggest economies hit their highest levels in more than a decade — including in the U.S., Japan, France and the U.K. Rising yields reflect growing investor discomfort at rising interest rates, persistent energy cost pressures, tepid economic growth and high fiscal spending.The IIF highlighted the four major economies in particular as facing "persistently large deficits and rising interest expenses — challenges long associated with debt-distressed emerging market sovereigns." The Washington-based group found that advanced economies paid over $3.3 trillion in interest on internationally traded government bonds last year, more than global spending on AI ($2.6 trillion), defense ($3.1 trillion), or clean energy ($2.3 trillion).Debt has become a political issue, creating a "vicious cycle be...