Overall, global debt swelled by $29 trillion in 2025, reaching a record $348.3 trillion. The main driver of the increase was persistent government budget deficits in the largest economies, rather than private sector borrowing, according to the Institute of International Finance (IIF).
Sovereign debt grew by more than $10 trillion, with three-quarters of that rise coming from the US, China, and the euro area. Government debt stood at $106.7 trillion at the year's end. Debt of non‑financial corporations rose to $100.6 trillion, and household debt increased to $64.6 trillion. Total debt in developed markets grew to $231.7 trillion, while emerging markets’ debt reached a record $116.6 trillion.
Despite the absolute increase, the global debt-to-GDP ratio fell to 308% thanks to developments in advanced economies. In emerging markets, by contrast, that ratio hit a record 235%. Analysts expect global debt to rise further in 2026 if large budget deficits persist and capital expenditures continue to be financed with borrowing.
This year, emerging markets face refinancing needs on a record $9 trillion of obligations, while developed countries must meet bond and loan repayments exceeding $20 trillion.