NEW YORK: A key measure of world indebtedness has resumed its climb as global debt hit a record high of $315 trillion in the first quarter of the year, fueled by borrowing in emerging markets, the United States and Japan, a study showed.

The global debt-to-output ratio — a measure describing the ability of a borrower to pay back debt — rose to hit 333 percent after three consecutive quarters of decline, the Institute of International Finance (IIF) said on Tuesday in its quarterly Global Debt Monitor report.

The turnaround comes as the dollar value of global debt surged by some $1.3 trillion quarter-on-quarter.

Debt in emerging markets grew to a record of more than $105 trillion — having more than doubled over the past decade according to IIF data.

The largest contributors to the increase among emerging economies were China, India and Mexico. South Korea, Thailand, and Brazil posted the largest dollar value declines in overall debt among the subgroup, the data showed.

“Government budget deficits are still higher than pre- pandemic levels and are projected to contribute around $5.3 trillion to global debt accumulation this year,” the IIF said in a statement. “Rising trade friction and geopolitical tensions also present significant potential headwinds for debt markets.”

Interest rates were expected to have started declining in the United States by now but sticky inflation has seen the Federal Reserve stand its ground.

This has meant higher borrowing costs across the globe and, for many emerging markets, weakened currencies that further exacerbate the cost of servicing debt and “could once again bring government debt strains to the fore,” the IIF said.

Egypt and Pakistan are seen as the emerging economies where the interest expense on government debt will be highest through 2026, with Pakistan set to spend above 50 percent of revenue on interest and Egypt more than 60 percent.

Among developed economies, the United States and Japan saw debt rise the quickest, adding 17 percentage points and 4 percentage points respectively.

Japan is expected to continue to spend on average under 2 percent of government revenue in debt servicing through 2026, according to the IIF. In the US, the figure is expected to rise above 10 percent from the current 8 percent and brush against 12 percent in the same period.

Last month, the International Monetary Fund warned the US level of spending is “of particular concern” and “out of line with long-term fiscal sustainability.”

KUALA LUMPUR: More than 2,000 religious leaders and scholars from 57 countries gathered in Kuala Lumpur on Tuesday for a conference organized by the Muslim World League to discuss the role of religion in facilitating dialogue and peace initiatives.

The MWL, an international non-governmental Islamic organization founded in Saudi Arabia in 1962, organized the 2024 International Conference of Religious Leaders with Malaysia’s Department of Islamic Development.

The conference was inaugurated by Malaysian Prime Minister Anwar Ibrahim and MWL Secretary-General Sheikh Dr. Mohammad bin Abdulkarim Al-Issa.

“This religious conference will be an annual feature in Malaysia since it has proved successful in building an understanding and affinity among religions in the world, as well as in Malaysia,” Anwar said during his speech.

“In a conference like this, we can observe the things that need to be done and need to be improved among Muslims, Christians, Buddhists or Hindus. We want to listen to your advice, criticisms and suggestions.”

While about two-thirds of Malaysia’s more than 33 million population are Muslims, there are also large Buddhist, Hindu, and Christian minorities in the country.

“Religious leaders should take an active, effective and courageous role in promoting peace and justice. It is the duty of religious leaders to ensure that governance is guided by strong moral and ethical values,” Anwar said.

Al-Issa said the conference seeks to have a tangible impact.

“This international conference was attended by international, religious, political, intellectual, academic and media leaders. It is considered the first nucleus of a major breakthrough through a number of initiatives and programs around the world, aiming to enhance friendship and cooperation between nations and peoples,” he said.

“Our world is most in need of true solidarity, solidarity with a tangible impact, and is most in need of awareness of the threats threatening its global peace and the harmony of its diverse national communities in their religions and races.”