Global debt hits record $318 trillion, major rise in 2024
In 2024, global debt increased by $7 trillion, reaching $318 trillion, according to a report from the Institute of International Finance (IIF). This marks a new record for debt.
About 65% of the increase in global debt in 2024 came from emerging markets, mainly China, India, Saudi Arabia, and Turkey. In developed markets, debt accumulation was primarily concentrated in the U.S., the United Kingdom, Canada, and Sweden.
By sector, nearly two-thirds of the debt increase originated from the government sector, with global government debt exceeding $95 trillion, up from $70 trillion before the pandemic in 2019.
The global debt-to-GDP ratio in 2024 rose by over 1.5 percentage points, reaching nearly 328% of GDP.
According to the IIF, global debt accumulation is expected to decelerate further, especially in the first half of 2025. With economic policy uncertainty reaching unprecedented levels—surpassing those seen during the peak of the pandemic—and borrowing costs remaining high, a more cautious approach from borrowers is likely to curb private sector credit demand.
However, experts predict that "government debt accumulation will remain elevated, exceeding $5 trillion in 2025, largely driven by the United States, China, India, France, and Brazil."
Discussions on changing the "debt brake" rule
The report suggests that the figures may rise further as demands for fiscal stimulus and increased military spending gain momentum in the eurozone. Discussions about amending Germany's "debt brake" rule are also intensifying, with many viewing it as a key factor hindering its economic performance.
The IIF (Institute of International Finance) is an international association of financial institutions. Its nearly 500 members come from 70 countries, including investment and commercial banks, insurance companies, and asset management firms.
Read also:
