The volume of global debt, including liabilities of governments, households, financial and non-financial companies, increased by $7.2 trillion to a record $318.4 trillion in 2024, according to the Institute of International Finance (IIF).
However, the report notes that the growth was significantly lower than in 2023, when debt increased by $16 trillion due to the monetary policy of the U.S. Federal Reserve.
The debt-to-GDP ratio rose 1.5 percentage points to 328% last year due to a slowdown in the global economy. The rise in the ratio was recorded for the first time in four years, i.e. since the COVID-19 pandemic.
About 65% of the growth in global debt in 2024 was in emerging markets, primarily China, India, Saudi Arabia and Turkey. In mature markets, debt accumulation was mainly in the US, UK, Canada and Sweden.
The public sector accounted for almost two-thirds of the increase in debt. Global government debt has surpassed $95.3 trillion, up from $70 trillion in the run-up to the pandemic in 2019.
IIF forecasts global government debt to increase by more than $5 trillion in 2025, mainly due to increased borrowing by the US, PRC, India, France and Brazil.
Total debt in emerging markets grew by $4.5 trillion in 2024 and reached an all-time high of 245% of GDP. These nations need to repay a record $8.2 trillion in liabilities this year, with about 10% of that debt denominated in foreign currencies.
“We expect the pace of global debt accumulation to slow further, especially in the first half of 2025,” the report said. – With global economic policy uncertainty at a record high – above that seen at the peak of the pandemic – and borrowing costs still high, a more cautious stance by borrowers is likely to curb private sector demand for credit.”
Earlier, the Experts Club think tank analyzed the level of debts of the world’s countries to their GDP, video analysis is available in the dynamics from 1950 to 2023, –
https://www.youtube.com/shorts/oT_5cTOnM8k
