Global Debt Hits $348 Trillion by 2025, Driven by Government Borrowing

Global Debt Peaks at New High

A new report from the Institute of International Finance (IIF) shows that global debt surged to a record $348 trillion by the end of 2025. Notably, nearly $29 trillion was added in 2025 alone, marking the fastest annual growth since the early days of the pandemic.

Governments Fuel Debt Growth

According to the report, rising government borrowing was the main driver behind the surge, with public debt accounting for over $10 trillion of the increase. Household and corporate debt expanded at a more moderate pace, signaling a shift in the center of global leverage toward the public sector.

Debt Ratios Show Diverging Trends

Looking at debt as a share of GDP, advanced economies saw a slight decline, with debt hovering around 308% of economic output. Meanwhile, emerging markets continued to face rising pressure, with debt-to-GDP ratios surpassing 235%—an all-time high.

• Debt pressure eases slightly in advanced economies
• Emerging markets hit record debt levels
• Public borrowing drives global debt growth