Global debt is projected to reach a record $348 trillions by the end of 2025.

According to Odaily, a report released by the International Institute of Finance (IIF) on Wednesday shows that global debt reached a record high of $348 trillions by the end of 2025. In just the past year alone, the debt increased by nearly $29 trillions, marking the fastest annual growth rate since the onset of the pandemic. The data indicates that the current global debt cycle is no longer primarily driven by households or corporations, but is mainly fueled by persistent fiscal deficits in major economies.

The IIF pointed out in its latest "Global Debt Monitor" report that this growth was mainly driven by governments, with government debt accounting for over $10 trillions of last year's increase.

The report noted that in 2025, the global debt-to-GDP ratio slightly declined to about 308%, mainly due to developed economies. Meanwhile, the debt-to-GDP ratio in emerging markets continued to rise, reaching a historic high of over 235%.