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This was mainly because of a rise in sovereign debt, which reached over $10 trillion. The United States, China, and the eurozone together accounted for about three-quarters of this increase.
The rise in global debt is now mainly caused by ongoing budget deficits in the world's largest economies, rather than by increases in household or corporate debt.
The debt-to-GDP ratio dropped to 308% last year, mainly because of the actions taken by advanced economies. In emerging economies, the ratio hit a new high, reaching 235% of GDP.
By the end of 2025, the total public debt had increased to $106.7 trillion, compared to $96.3 trillion in the previous year. According to the IIF, non-financial corporate debt amounted to $100.6 trillion, and household debt reached $64.6 trillion.
In more developed markets, overall debt increased to $231.7 trillion, whereas in growing markets, it hit a new high of $116.6 trillion.
The report states that if budget deficits stay high and businesses keep financing their capital spending by issuing bonds, global debt levels are expected to rise further in 2026.
source: iif.com
The rise in global debt is now mainly caused by ongoing budget deficits in the world's largest economies, rather than by increases in household or corporate debt.
The debt-to-GDP ratio dropped to 308% last year, mainly because of the actions taken by advanced economies. In emerging economies, the ratio hit a new high, reaching 235% of GDP.
By the end of 2025, the total public debt had increased to $106.7 trillion, compared to $96.3 trillion in the previous year. According to the IIF, non-financial corporate debt amounted to $100.6 trillion, and household debt reached $64.6 trillion.
In more developed markets, overall debt increased to $231.7 trillion, whereas in growing markets, it hit a new high of $116.6 trillion.
The report states that if budget deficits stay high and businesses keep financing their capital spending by issuing bonds, global debt levels are expected to rise further in 2026.
source: iif.com
