Sri Lanka, Feb. 26 -- Global debt climbed to a record $348 trillion at the end of 2025, after nearly $29 trillion was added over the year in the fastest yearly build-up since the pandemic surge, a banking trade group reported on Wednesday.

The increase was driven primarily by governments, which accounted for more than $10 trillion of the rise, with the United States, China and the euro area responsible for roughly three-quarters of the jump, the Institute of International Finance said in its latest Global Debt Monitor.

The data point to a global debt cycle now driven less by households or companies and more by persistent fiscal deficits in major economies, as bond markets have absorbed record debt sales at the start of the year.

With g...