NEW YORK: Global debt hit a record high of $312 trillion at the end of the second quarter, driven by borrowing in the United States and China, while a key debt ratio in emerging markets also scaled a fresh peak, data from a banking trade group showed.

The Institute of International Finance (IIF), a financial services trade group, said on Wednesday that global debt rose by 2.1 trillion in the first half to $312 trillion - a new high point after previous data was revised lower.

The IIF flashed warning signs on the trend of ever-increasing government borrowing in its latest Global Debt Monitor report, forecasting global government borrowing would rise from its current level of $92 trillion to $145 trillion by 2030 and top $440 trillion by 2050.

“With the Fed’s new easing cycle expected to accelerate the pace of global debt buildup, a significant concern is the apparent lack of political will to address rising sovereign debt levels in both mature and emerging market economies,” the IIF report said.

A big chunk of the borrowing was driven by energy transition in the face of climate change which was expected to account for over a third of the projected rise by 2050. “This poses significant challenges, as many governments are already allocating a growing share of their revenue to interest expenses,” the report said.