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).
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 percent 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 percent 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.
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.
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 percent to 10.1 percent, and non-financial corporate debt increased from 37.3 percent to 38.2 percent, while public debt decreased from 27.5 percent to 26.8 percent and financial sector debt decreased from 17.5 percent to 17.3 percent.
