Global debt soars by US$29 trillion as US, China drive rapid build-up: report
Global debt accumulation ‘accelerated sharply’ in 2025, driven by surging investment in the US, China and Europe, report finds
Global debt climbed to a record high in 2025, rising at the fastest pace since the pandemic, with China and the United States accounting for a large share of the increase, according to a new report.
Total global debt surged to US$348 trillion last year, with nearly US$29 trillion of new debt added over the year, the Institute of International Finance (IIF) said.
Government borrowing accounted for more than US$10 trillion of the increase, with the United States, China and the euro zone together responsible for roughly three-quarters of the rise, according to the banking trade group’s latest “Global Debt Monitor” report released on Wednesday.
A new wave of capital expenditure “super cycles” is driving growth in global debt markets, including large-scale investment in artificial intelligence data centres, energy security and climate change adaptation, and resilient infrastructure, according to the IIF.
“Looking ahead, global debt accumulation is set to remain robust amid rising government borrowing needs – particularly in the US, China, Germany, Japan and India,” it said.
The IIF’s latest report showed that China’s government debt level rose from 88.4 per cent of gross domestic product in the fourth quarter of 2024 to 96.8 per cent in the fourth quarter of 2025.