According to the Institute of International Finance (IIF), total global debt by the end of 2025 will have grown by almost $29 trillion, reaching a new all-time high of $348 trillion. This is the fastest annual increase since the COVID-19 pandemic.
Government borrowing was the main contributor to the debt increase—more than $10 trillion in 2025 alone. Approximately three-quarters of this increase came from the United States, China, and the eurozone. Public debt reached $106.7 trillion (compared to $96.3 trillion the previous year).
IIF experts particularly highlight two strategic factors that will become powerful drivers of debt growth in 2025:
a sharp increase in spending on national security and defense (especially noticeable in Europe amid geopolitical tensions and NATO’s plans to increase military spending to 5% of GDP by 2035);
large-scale investments in artificial intelligence infrastructure—data centers, energy for AI, and related technologies.
The corporate sector (primarily non-financial companies) also borrowed heavily to fuel the AI ”tech race,” with its debt approaching $100.6 trillion.
Meanwhile, the debt-to-GDP ratio continued to decline for the fifth consecutive year, reaching approximately 308%, primarily due to slower growth in private debt (households and the financial sector).
Analysts warn that if leading economies’ budget deficits remain high and companies continue to finance investments through bonds, global debt will continue to rise steadily in 2026.
The record high of $348 trillion clearly demonstrates how geopolitics and the technological revolution are rewriting the rules of the game in global financial markets.