Global debt surges to $318 trillion, surpassing records
According to a report from the Institute of International Finance (IIF), global debt increased by $7 trillion in 2024, reaching $318 trillion. This marks a new record for debt accumulation.
Approximately 65% of the global debt increase in 2024 came from emerging markets, mainly China, India, Saudi Arabia, and Turkey. In mature markets, debt accumulation was predominantly concentrated in the US, the United Kingdom, Canada, and Sweden.
By sector, nearly two-thirds of the debt increase originated from the government sector, with the global level of government debt surpassing $95 trillion, compared to $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.
The IIF stated that global debt accumulation is expected to slow further, particularly in the first half of 2025. With economic policy uncertainty reaching unprecedented levels—surpassing those seen at the height of the pandemic—and borrowing costs remaining high, a more cautious approach from borrowers is likely to restrain 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 indicates that the figures may rise further as calls for fiscal stimulus and increased military spending gain traction in the eurozone. Additionally, growing debates over potential changes to Germany's "debt brake" rule reflect concerns that it is becoming a significant constraint on the country's economic performance.
The IIF (Institute of International Finance) is an international association of financial institutions with nearly 500 members from 70 countries. Its membership includes investment and commercial banks, insurance companies, and asset management firms.
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