Global debt surged to a record $348.3 trillion at the end of 2025, after nearly $29 trillion was added over the year, marking the fastest annual increase since the pandemic, according to the Institute of International Finance (IIF) report released on Wednesday.
The rise was largely driven by government borrowing, which accounted for more than $10 trillion of the increase. Almost three-quarters of this came from the United States, China, and the euro area, highlighting how fiscal deficits in major economies are shaping the global debt picture.
In simple terms, many governments borrowed heavily to fund spending, rather than relying on private or corporate debt.
Debt climbed across both advanced and emerging markets. Total debt in advanced economies reached $231.7 trillion, while emerging markets collectively hit $116.6 trillion.
Despite the record nominal level, the global debt-to-GDP ratio fell slightly to about 308%, mainly due to growth in advanced economies. Emerging markets, by contrast, saw debt ratios rise to a new record above 235%.
Sector-specific debt at the end of 2025 was:
Household and corporate debt ratios fell slightly, while public debt continued to expand. In emerging markets, the largest government borrowing increases were in China, Brazil, Mexico, Russia, and the euro area.
The IIF attributed the surge to:
“Easier financial conditions should support mobilisation of capital for national priorities, including defence and infrastructure,” the report said.
The global debt build-up increases exposure to interest rate shifts and investor sentiment. With public borrowing expected to remain strong in 2026, especially in the U.S., China, Germany, Japan, and India, debt levels are likely to stay near historic highs.
Emerging markets face a record $9 trillion in refinancing needs, while mature markets have more than $20 trillion in maturing bonds and loans. Continued borrowing at 2025’s pace could see debt-to-GDP ratios rise again, particularly in leveraged emerging economies.
The IMF projects global growth of 3.3% in 2026, with advanced economies at 1.8% and emerging markets just above 4%. While steady, this growth may not offset rising debt stocks.
U.S. and Pakistani leaders forecast a Sunday signing of a long-elusive framework agreement to end fighting between the United States and Iran, as Reut...
Tajikistan has strengthened its position as one of Central Asia’s fastest-growing economies. According to the European Bank for Reconstruction and D...
The New York Knicks defeated the San Antonio Spurs 94-90 to close out the series 4-1 and claim their first NBA championship since 1973, sparking celeb...
In the runup to the G7 summit, hosted by France in Évian-les-Bains on Monday, 15 June, China has addressed global economic balances in a videoconfer...
Switzerland on Sunday rejected a referendum proposal to cap its population at 10 million, a projection showed, as voters prioritised economic stabilit...
Tajikistan has strengthened its position as one of Central Asia’s fastest-growing economies. According to the European Bank for Reconstruction and Development (EBRD), the trend is supported by investment activity, industrial expansion and large-scale infrastructure projects.
The International Monetary Fund (IMF) has urged Georgia to implement reforms to tackle youth unemployment. Nearly 30 per cent of people aged 15-24 are without a job in the country, according to World Bank data.
British Prime Minister Sir Keir Starmer has pledged to publish the UK government's long-awaited Defence Investment Plan ahead of next month's NATO summit in Ankara, following growing pressure over the UK's military spending commitments.
Hundreds of protesters have torn down fences surrounding a planned luxury development site in Albania, as public anger continues to mount over construction in environmentally sensitive areas.
Pakistan has warned that any attempt by India to block or significantly reduce river flows under the Indus Waters Treaty could have “far-reaching consequences”, after India's water minister said New Delhi was working to ensure that “not a single drop” of water reaches Pakistan in the coming years.
Armenia has every right to choose Europe. But Europe’s support for Armenia’s direction should not become automatic approval of its political process.
U.S. President Donald Trump has said a peace agreement with Iran is scheduled to be signed on Sunday in a post on social media, despite Tehran's Foreign Ministry spokesperson Esmaeil Baghaei saying no deal would be approved this weekend.
Japan’s birth rate and fertility levels have fallen to their lowest levels on record, highlighting the country’s worsening demographic crisis as fewer people marry and have children.
The global race to develop quantum computing is accelerating, with governments and technology firms investing heavily in what is expected to become a major new computing era.
At the start of 2026, something unusual happened in China's car market. BYD, the company that had spent years at the top of the domestic sales charts, was knocked off its perch by a rival.
Apple has unveiled a long-awaited upgrade to Siri, aiming to close the gap with technology rivals and emerging artificial intelligence firms in an increasingly competitive market.
ChatGPT maker OpenAI has confidentially filed for a U.S. initial public offering (IPO), the company said on Monday, joining rival Anthropic in a race to the stock market as investors seek exposure to the artificial intelligence boom.
Chinese carmakers are rapidly reshaping the global automotive market, with record exports, soaring electric vehicle sales and growing investments overseas putting pressure on established European, Japanese and U.S. rivals.
The International Labour Organization (ILO) has begun its latest round of negotiations on creating the first binding global standards for platform-based work, covering services such as ride-hailing, food delivery and other app-based work.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment