Global debt hits record $324T in Q1: IIF

Global debt rose to a fresh record of more than $324 trillion in the first quarter of 2025, driven largely by rising debt burdens in China, France, and Germany, the Institute of International Finance (IIF) said on Tuesday.

The IIF said global debt increased by about $7.5 trillion during the first three months of the year, pushing the total above $324 trillion.

That quarterly jump is more than four times the average quarterly increase of $1.7 trillion seen since the end of 2022, the institute added.

Part of the rise was due to a sharp depreciation in the US dollar against the currencies of major trading partners, it noted.

Despite the surge in borrowing, the global debt-to-GDP ratio edged down slightly during the quarter, holding just above 325%, the IIF said. But debt levels in emerging markets climbed to an all-time high of 245% of GDP.

Total debt in those economies rose by $3.5 trillion to over $106 trillion, with China alone accounting for a $2 trillion increase.

China’s debt-to-GDP ratio reached 93% in the first quarter and is expected to hit 100% by the end of the year, the report said.

Among the world’s largest economies, the IIF warned of rising US debt levels and the growing need for government financing, particularly as Washington pushes ahead with tax cut plans.

An increase in US sovereign bond issuance could push up yields and raise the cost of interest payments, further fueling inflationary pressures, the institute said.