Global debt hits record of nearly $338 trillion, says Institute of International Finance

Reuters ^ | 09/27/2025 | Canan Sevgili

[SeekAndFind]

Global debt hit a record high of $337.7 trillion at the end of the second quarter, driven by easing global financial conditions, a softer U.S. dollar and a more accommodative stance from major central banks, a quarterly report showed on Thursday.

The Institute of International Finance, a financial services trade group, said that global debt rose over $21 trillion in the first half of the year to $337.7 trillion.

China, France, the United States, Germany, Britain, and Japan recorded the largest increases in debt levels in U.S. dollar terms, though some of that was due to a waning dollar, the IIF found.

The U.S. currency has weakened 9.75% since the start of the year against a basket of major trading partners.

GLOBAL DEBT SURGE COMPARABLE TO COVID-ERA INCREASE

"The scale of this increase was comparable to the surge seen in H2 2020, when pandemic-related policy responses drove an unprecedented buildup in global debt," the IIF said in its Global Debt Monitor.

Looking at debt-to-GDP ratios - an indicator of the ability to repay debt by comparing to what is being produced - Canada, China, Saudi Arabia and Poland saw the sharpest increases. The ratio declined in Ireland, Japan, and Norway, the report found.

Overall, the global debt-to-output ratio continued to move slowly lower, standing just above 324%. However, in emerging markets the ratio hit 242.4% - a new record after a downward revision on the last report in May.

Total debt in emerging markets rose by $3.4 trillion in the second quarter to a record high of more than $109 trillion.

Emre Tiftik, IIF Sustainable Research Director, said in a webinar that rising military spending will strain government balance sheets amid intensifying geopolitical tensions.

Tiftik noted that the debt increase is mainly in government debt,

[Pol-92064]

Make $338T in bit coin and pay it off. Easy peasy! ;-)

[crusty old prospector]

Or have Xiden autopen it away.

[Texas Eagle]

The world has spent 338 trillion dollars MORE than it has and STILL there's famine and poverty and squalid living conditions for millions if not billions of people.

Explain to me again how more money will solve these problems!

That would be like a teenager telling you he's a hundred thousand dollars in debt and if you don't increase his allowance from 10 dollars a week to 20 dollars a week, he'll starve to death.

I haven't had teenagers in the house for over 20 years now so I don't know what the going rate on allowances is so adjust for inflation.

[Wuli]

The world’s central banksters in error thinking they can inflate money forever, as long as they all do it.

[enumerated]

If there is $338T of debt, then there must also be $338T in Accounts Receivable, since the debt is owed to somebody.

Did I just solve the world’s debt problem? If so.. you’re all welcome!!

[datricker]

What about the other side of the ledger how much are our collective assets worth?

[fireman15]

“Global debt hit a record high of $337.7 trillion.”

Russian National debt was $323 billion as of Q2 of 2025. This is less than 1/10th of 1 percent of $337.7 Trillion. The Zeepers among us claim that Russia’s crushing debt is destroying their economy. Yes, they have a real problem compared to the rest of the world

Of course, I wouldn’t want to mention the country which has the highest and fastest growing debt in the world by far... What could possibly go wrong?

[for-q-clinton]

So who the heck is funding all this debt? It’s a the largest ponzi scheme in history.

[If You Want It Fixed - Fix It]

Cool. Investors risk.

Part of the game.

[Shady]

A majority of it was stolen, and we know by whom…