Global Debt Shifts to Riskier, Short-Term Financing

Governments worldwide are not just borrowing more money—they are also changing *how* they borrow it. This shift creates new dangers for the global economy, according to financial analysts. The main concern is the rapid growth of public debt. However, experts are now equally worried about the move toward shorter-term debt and more variable interest rates. This financing strategy makes national budgets highly sensitive to sudden changes in borrowing costs. When interest rates rise, debt payments increase quickly, straining public finances. “It’s a double risk,” one economist noted. “High debt levels leave less room for error, while the new debt structure is more exposed to market shocks.” The combined effect could threaten financial stability in many countries. Policymakers are urged to address both the amount of debt and its riskier composition.