Global Debt Approaches USD 350 Trillion
Temps de lecture : min
The Institute of International Finance (IIF), the association representing major global banks and financial institutions, released its latest report on global indebtedness at the end of February.
It estimates that total worldwide debt—covering governments, corporates, and households—reached USD 348 trillion at year‑end 2025, an increase of USD 29 trillion in a single year. This marks the fastest annual rise since the pandemic. By comparison, in 2024 global debt increased by USD 7 trillion, four times less.
Despite this surge, the global debt‑to‑GDP ratio has declined to 308%, down from 328% at the end of 2024, supported by robust growth in developed economies. In contrast, the ratio for emerging markets has reached an all‑time high of 235%. However, the situation varies significantly across economic sectors.
Governments are the primary contributors to the increase, adding USD 10 trillion in new debt over the year, bringing total sovereign debt to USD 106.7 trillion. This rise is driven mainly by the United States, China, and the euro area, where spending has increased to secure strategic sectors such as defence, and to cover the interest payments on existing debt.
Non‑financial corporate debt has also risen, reaching USD 100.6 trillion, partly reflecting substantial investment in artificial intelligence development. Household debt, meanwhile, has remained relatively stable at USD 64.6 trillion.
This acceleration in global indebtedness echoes the exceptionally high levels of bond issuance we have highlighted in our Economic and Financial Outlook for several quarters. It also underscores the growing risk that issuers—both sovereign and corporate—may face greater difficulty attracting investors as the ample liquidity provided by central‑bank balance sheets continues to recede. This dynamic could contribute to further upward pressure on long‑term interest rates and constrain the fiscal and economic policies of the most indebted countries.
Written by
Marie-Edmée de MONTS DE SAVASSE
Head of Fixed‑Income Fund Management
