Global debt upsurges to a record $318 trillion in 2024
According to a report from the Institute of International Finance (IIF), global debt increased by $7 trillion in 2024, reaching a total of $318 trillion. This marks a new record for debt levels.
Approximately 65% of the increase in global debt in 2024 stemmed from emerging markets, primarily China, India, Saudi Arabia, and Turkey. In developed markets, debt accumulation was chiefly concentrated in the US, the United Kingdom, Canada, and Sweden.
By sector, nearly two-thirds of the debt increase originated from the government sector, with global government debt levels exceeding $95 trillion compared to $70 trillion before the pandemic in 2019.
The global debt-to-GDP ratio in 2024 rose by over 1.5 percentage points, reaching nearly 328% of GDP.
The IIF noted that global debt accumulation is expected to slow further, especially in the first half of 2025. Given the unprecedented uncertainty in global economic policy—exceeding levels seen at the height of the pandemic—and persistently high borrowing costs, a more cautious approach from borrowers will likely restrain private sector credit demand.
However, experts predict that "government debt accumulation will remain elevated, exceeding $5 trillion in 2025, largely driven by the United States, China, India, France, and Brazil".
Discussions on changing the "debt brake" rule
"The numbers could rise even higher, as calls for fiscal stimulus and increased military spending grow louder in the eurozone, including mounting discussions about amending Germany's 'debt brake' rule, which is increasingly viewed as a significant factor impeding Germany's economic performance," reads the report.
The IIF (Institute of International Finance) is an international association of financial institutions with nearly 500 members from 70 countries. It includes investment and commercial banks, insurance companies, and asset management firms.
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