According to data from the IIF, global debt reached a record level of 348 trillion dollars in 2025. The increase of over 25 trillion dollars compared to the previous year is mainly due to persistently high budget deficits in developed countries. Key factors driving this trend are rising defense spending related to geopolitical conflicts and massive investments in artificial intelligence and energy. The ratio of global debt to world GDP exceeded 330%, returning to pre-COVID-19 pandemic levels.

Record Debt Level

Total global debt, encompassing both public and private sectors, rose to 348 trillion dollars. This represents an increase of over 25 trillion dollars compared to 2024. Public sector debt alone in developed countries increased by 12 trillion dollars last year.

Main Sources of Growth

Developed countries are responsible for the fastest debt growth, where the budget deficit relative to GDP doubled compared to the pre-pandemic period. Military spending, driven by conflicts in Ukraine and the Middle East, and massive investments in artificial intelligence development and energy infrastructure play a significant role.

Risks for the Global Economy

IIF analysts indicate that the persistently high level of debt, coupled with the maintenance of restrictive monetary policy by major central banks, poses a serious risk to global financial stability. High debt servicing costs may limit governments' ability to respond to future crises.

Relative Stabilization of Ratios

Despite the record nominal value of debt, its ratio to world GDP, exceeding 330%, is not the highest in history. This indicator remains at a level similar to that of 2021 and lower than the pandemic peak. This suggests that economic growth partially kept pace with the rate of liability increase.

According to the latest report from the IIF, global debt reached a historic peak of 348 trillion dollars last year. This represents an increase of over 25 trillion dollars compared to 2024. The main driver of this growth remains high budget deficits in developed economies, which in 2025 were on average twice as high as in the pre-COVID-19 pandemic period. Among the key factors driving spending are primarily the escalation of defense expenditures worldwide. Armed conflicts, such as the war in Ukraine and tensions in the Middle East, have forced many countries to significantly increase their military budgets. The second pillar of debt growth is colossal investments in new technologies, especially in artificial intelligence and the energy transition.