The pace of global debt accumulation accelerated sharply in 2025, marking the fastest increase since the pandemic-era surge, according to the latest Global Debt Monitor report from the Washington-based Institute of International Finance (IIF).

The IIF report said total global debt rose by nearly $29 trillion, reaching a new all-time high of $348 trillion, with roughly two-thirds of the increase originating in mature markets as deficit spending rose.

Debt stocks reached new highs across both advanced and emerging economies, underscoring the broadbased nature of the buildup.

“As a share of GDP however, global debt ratios declined for a fifth consecutive year — driven primarily by mature markets — easing modestly to around 308%,” said the IIF.

“The improvement, however, masks a growing divergence. In emerging markets, debt-to-GDP ratios continued to rise, hitting a fresh record above 235% of GDP.

“Where global debt ratios did decline, this was entirely attributable to private sector, with private debt/GDP ratios now well below pre-pandemic peaks.

“By contrast, government debt burdens continued to climb, reinforcing a persistent, structural shift in the composition of global leverage — more public, less private.

“Government borrowing accounted for more than $10 trillion of the overall increase in global debt in 2025, with China, the U.S., and the Euro Area responsible for nearly three-fourths of the rise.

“Within Europe, the expansion in public debt was concentrated in France and Italy, followed by Germany. Beyond the continued surge in China, the buildup in sovereign debt across emerging markets was most pronounced in Brazil, Mexico, and Russia.”