The volume of global debt, including obligations of states, households, financial and non-financial companies, increased by $29 trillion in 2025, reaching a record $348.3 trillion, according to the Institute of International Finance (IIF).
This was primarily due to an increase in sovereign obligations, which accounted for over $10 trillion, with the United States, China, and eurozone countries making up about three-quarters of this growth.
The increase in global debt is currently more related to the persistent budget deficits of the world's largest economies than to household or corporate debt.
The debt-to-GDP ratio fell to 308% last year, mainly due to developed economies. In developing countries, the figure reached a record 235% of GDP.
Government debt at the end of 2025 amounted to $106.7 trillion compared to $96.3 trillion the previous year. The debt of non-financial companies reached $100.6 trillion, while households stood at $64.6 trillion, according to the IIF.
In developed markets, total debt rose to $231.7 trillion, while in developing markets it reached a record $116.6 trillion.
If the budget deficit remains significant and companies continue to finance capital expenditures through bond issuance, the volume of global debt is expected to continue increasing in 2026, the report notes.
According to the IIF, this year developing markets will have to repay debts totaling over $9 trillion, which is the highest refinancing volume in history. In developed markets, repayments of over $20 trillion in bonds and loans are expected.
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