Global Debt Surges to $348 Trillion as Deficit Spending Rises

Global debt ballooned to a record $348 trillion last year, marking the fastest annual increase since the pandemic as governments ramped up borrowing across advanced and developing economies.

Total global debt — including public and corporate borrowing — rose by $29 trillion in 2025, according to the Institute of International Finance. Roughly two-thirds of the increase came from developed markets as deficit spending rose, led by China, the US and Europe.