Global debt surged by nearly $29 trillion in 2025, reaching a record high of $348.3 trillion, according to the latest Global Debt Monitor report released by the Institute of International Finance (IIF) on Wednesday.
The institute said the pace of global debt accumulation accelerated sharply last year, marking the fastest increase since the pandemic period.
Roughly two-thirds of the rise in global debt stemmed from advanced economies, driven largely by higher fiscal deficit spending. Debt levels in both advanced and emerging markets climbed to new peaks, highlighting the broad-based nature of the buildup.
Total debt in advanced economies stood at $231.7 trillion in the fourth quarter of last year, while emerging markets’ total debt reached $116.6 trillion.
Despite the record nominal level, the global debt-to-GDP ratio fell for the fifth consecutive year, declining to around 308% in 2025. The drop was mainly driven by advanced economies.
In contrast, the debt-to-GDP ratio in emerging markets continued to rise, surpassing 235% and hitting a new record.
By sector, household debt reached $64.6 trillion in the fourth quarter of 2025, non-financial corporate debt rose to $100.6 trillion, public debt climbed to $106.7 trillion, and financial sector debt totaled $76.4 trillion.
More than $10 trillion of the overall increase in global debt last year came from public borrowing. Nearly three-quarters of that rise originated in China, the US, and the euro area.
Within Europe, the expansion in public debt was concentrated mainly in France and Italy, followed by Germany. Among emerging markets, government debt accumulation was most pronounced in Brazil, Mexico, and Russia, alongside China.
When considered as ratios to GDP, household debt decreased from 57.5% to 57% in the last quarter of 2025 compared to the same period of the previous year, non-financial corporate debt decreased from 88.4% to 88.2%, and financial sector debt decreased from 69.8% to 68.2%. During the same period, the ratio of public debt increased from 93% to 94.8%.
In Türkiye, considering the ratios of debt to GDP, in the last quarter of last year compared to the same period of the previous year, household debt increased from 9.9% to 10.1%, and non-financial corporate debt increased from 37.3% to 38.2%, while public debt decreased from 27.5% to 26.8% and financial sector debt decreased from 17.5% to 17.3%.
The report stated that, looking ahead, global debt accumulation is expected to remain strong, particularly due to increasing public borrowing needs in the US, China, Germany, Japan, and India.
