Global debt has surged to a record $348 trillion by the end of 2025, marking the fastest rise since the pandemic, primarily due to increased government deficits.
Global debt reached a staggering $348 trillion at the end of 2025, according to the latest Global Debt Monitor report from the Institute of International Finance (IIF). This increase of $29 trillion over the year represents the fastest growth in global debt since the onset of the pandemic. The report highlights that governments significantly contributed to this rise, with $1 trillion of the increase attributed to them, while the United States, China, and the Eurozone collectively accounted for three-quarters of this growth.
This surge in global debt suggests that the fiscal deficits of the world's largest economies are more influential in pushing up global debt levels than household and business loans. The bond markets have seen substantial activity, bolstered by record public debt issuance. This trend raises concerns about the sustainability of debt, especially as economies strive to recover from pandemic-induced disruptions, which may lead to increased borrowing and fiscal pressures.
The implications of this unprecedented level of debt raise important questions regarding global economic growth and stability. With global debt now measured as a percentage of GDP, analysts are scrutinizing the potential impacts on economic development, inflation rates, and public policy. As nations navigate these challenges, the focus will be on how governments manage their fiscal responsibilities in the face of mounting debt and the potential repercussions for future generations.
