The total debt volume in the world increased by $29 trillion in 2025, reaching a historic maximum of $348.3 trillion, according to data published by the Institute of International Finance (IIF).
The main reason for the growth of global debt was increased sovereign obligations, which accounted for over $10 trillion. The lion's share of this growth came from the United States, China, and Eurozone countries, which contributed about three-quarters of the increase.
According to IIF, the increase in global debt is currently primarily due to budget deficits in the largest economies, rather than household debt or corporate debt.
By 2025, the debt-to-global GDP ratio decreased to 308%, mainly due to actions taken by developed countries. At the same time, in developing economies, this figure reached a record 235% of GDP.
By the end of the year, government debt amounted to $106.7 trillion, while the debt of non-financial companies reached $100.6 trillion, and household debt totaled $64.6 trillion. The total debt in mature markets was $231.7 trillion, while in developing markets it reached a record $116.6 trillion.
The IIF report emphasizes that if budget deficits continue and companies keep financing their capital expenditures through bond issuance, global debt will continue to grow in 2026.
This year, developing markets are set to repay over $9 trillion in debts — a record level in the history of refinancing. In mature markets, repayments of over $20 trillion in bonds and loans are expected, according to the report.
