World Debt Climbs to All-Time High of $338 Trillion
The emerging-market debt-to-GDP ratio rose to a new record of 242.4%, following a downward revision in the May report.
Quick overview
- Global debt reached a record high of $337.7 trillion by the end of Q2 2025, influenced by looser financial conditions and central bank policies.
- China, France, the U.S., Germany, the U.K., and Japan saw the largest increases in debt levels, while emerging markets added $3.4 trillion.
- The debt-to-GDP ratio globally slightly decreased but remained above 324%, with Canada, China, Saudi Arabia, and Poland experiencing the sharpest increases.
- Emerging-market debt hit a record $109 trillion, with concerns rising over U.S. short-term debt comprising 20% of total public obligations.
China, France, the United States, Germany, the United Kingdom, and Japan posted the largest increases in debt levels in dollar terms, while emerging markets added $3.4 trillion.
Global debt climbed to an all-time high of $337.7 trillion at the end of the second quarter of 2025, driven by looser global financial conditions, growing instability, a weaker dollar, and more accommodative stances from major central banks.
The report, released by the Institute of International Finance (IIF), showed that debt rose by $21 trillion compared with the first quarter. The magnitude of the increase was comparable to the second half of 2020, when pandemic-driven monetary responses triggered an unprecedented jump in global debt.
A key measure highlighted was the debt-to-GDP ratio, which reflects a nation’s repayment capacity. Canada, China, Saudi Arabia, and Poland saw the sharpest increases, while the ratio declined in Ireland, Japan, and Norway. Globally, the debt-to-GDP ratio edged slightly lower but remained above 324%.
Emerging Markets Debt
Emerging-market debt climbed by $3.4 trillion in Q2, hitting a record $109 trillion. These economies face nearly $3.2 trillion in bond and loan repayments before year-end.
The emerging-market debt-to-GDP ratio rose to a new record of 242.4%, following a downward revision in the May report.
The IIF flagged mounting concerns about U.S. short-term debt, which now accounts for roughly 20% of total public obligations and about 80% of Treasury issuance.
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