Global debt surpasses $365 trillion as economists warn of a 'vicious cycle'

Global debt has surpassed $365 trillion, according to a report from CNBC, prompting economists to warn of a "vicious cycle" in which rising borrowing costs are increasingly squeezing government budgets.

The report notes that advanced economies are now paying more in debt interest than the entire world spends on artificial intelligence, defense and clean technology combined, underscoring the scale of the debt burden facing many governments.

Economists cited in the report point to a combination of elevated bond yields and persistent inflationary pressures as key factors driving up the cost of servicing existing debt, making it more expensive for governments to borrow further.

The growing interest burden leaves less fiscal room for spending on other priorities, with some economists warning that the trend could become self-reinforcing if rising costs force further borrowing to cover interest payments.

The report does not specify which individual countries face the most acute pressure, though it notes that the trend is being closely watched by markets given its potential implications for global bond yields and inflation.