The global debt volume, which includes the obligations of states, households, financial and non-financial companies, increased by $7.2 trillion in 2024, reaching a record $318.4 trillion, according to the Institute of International Finance (IIF).
However, the report notes that this growth was significantly lower than in 2023, when debt rose by $16 trillion due to the monetary policy of the U.S. Federal Reserve.
Due to the slowdown in the global economic growth rate last year, the debt-to-GDP ratio increased by 1.5 percentage points to 328%. This rise was recorded for the first time in four years, since the onset of the COVID-19 pandemic.
About 65% of the increase in global debt in 2024 came from emerging markets, primarily China, India, Saudi Arabia, and Turkey. In mature markets, debt accumulation mainly occurred in the U.S., U.K., Canada, and Sweden.
Nearly two-thirds of the debt increase was attributed to the public sector. The global government debt exceeded $95.3 trillion, compared to $70 trillion on the eve of the pandemic in 2019.
The IIF forecasts that global government debt will rise by more than $5 trillion in 2025, primarily due to increased borrowing by the U.S., China, India, France, and Brazil.
The total debt volume in emerging market countries grew by $4.5 trillion in 2024, reaching a historical high of 245% of GDP. This year, these countries need to repay record obligations of $8.2 trillion, with approximately 10% of this debt denominated in foreign currencies.
"We anticipate a further slowdown in the accumulation of global debt, particularly in the first half of 2025," the report states. "As uncertainty in global economic policy has reached a record high—surpassing levels seen at the peak of the pandemic—and borrowing costs remain high, a more cautious stance from borrowers is likely to restrain private sector demand for loans."