The world debt – the total amount of outstanding debt of all countries of the world, including government, corporate and household debt – increased by $7 trillion in 2024 and reached a record $318 trillion, Reuters reports, citing data from the report of the Institute of International Finance (IIF).
World debt – the total amount of outstanding debt of all countries of the world, including government, corporate and household debt – increased by $7 trillion in 2024 and reached a record $318 trillion.
The ratio of global debt to global GDP increased for the first time since 2020 (by 1.5 percentage points) to 328% due to an increase in total public debt to $95 trillion.
Emerging markets, led by China, India, Saudi Arabia, and Turkey, accounted for about 65% of the growth in global debt last year. At the same time, developing countries will have to repay or refinance $8.2 trillion this year. These obligations could jeopardize the ability of individual countries to withstand political and economic storms, the report’s authors point out.
The IIF forecasts that global debt will increase by another $5 trillion in 2025, mainly due to increased government spending on business support and infrastructure development, as well as defense, especially in Europe.