According to the Institute of International Finance (IIF), in 2025, global debt increased by $29 trillion, reaching a record $348.3 trillion. The main factor behind this growth was the increase in sovereign obligations, which amounted to over $10 trillion. Most of this increase came from the United States, China, and eurozone countries.
According to IIF data, the primary reason for the growth of global debt today is the budget deficits of leading economies, rather than the debts of companies or households.
In 2025, the debt-to-global GDP ratio fell to 308%, primarily due to developed countries. In developing nations, this figure rose to a record 235% of GDP.
By the end of the year, government debt amounted to $106.7 trillion, non-financial corporate debt reached $100.6 trillion, and household debt totaled $64.6 trillion. In mature markets, total debt was $231.7 trillion, while developing economies reported a record $116.6 trillion.
IIF warns that if budget deficits persist and companies continue to finance their capital expenditures through bond issuance, global debt will continue to increase in 2026.
This year, developing markets are set to repay debt obligations totaling over $9 trillion, which is historically high. In mature markets, debt repayments exceeding $20 trillion for bonds and loans are also expected, according to the report.
