Emerging Markets Drive Global Debt Past $365 Trillion, IIF Says
Emerging markets drove most of the increase as borrowing costs and energy shocks pushed government, corporate and household debt higher, the IIF said.
- Global debt reached a record $365.5 trillion in the first half of 2026, marking the sixth consecutive quarterly increase, according to the Institute of International Finance report published on Wednesday.
- China and the United States drove the bulk of the increase, with Emerging market debt jumping $6.5 trillion to $110.6 trillion while Mature market debt rose more slowly to $255 trillion.
- The Global debt-to-GDP ratio stands at around 310%, but the IIF warned the apparent improvement is an "illusion of stability" produced by high inflation rather than real fiscal consolidation.
- Mature economies paid more than $3.3 trillion in Interest on Government bonds over the past year, surpassing annual Global spending on each of AI-related technology, defence, and clean energy separately.
- The IIF expects debt accumulation to accelerate as spending on healthcare, energy security, AI-related technology, and defence—the so-called "HEAD supercycle"—reaches around $25 trillion this year, intensifying fiscal pressures.
46 Articles
46 Articles
Total global debt rose by $10 trillion in the first half of this year, topping $365 trillion. Rising debt-servicing costs are posing a growing risk to governments in many countries, the Institute of International Finance (IIF) said. According to the report, government debt is rising at a time when yields on medium- and long-term government bonds in some of the world's largest economies have reached their highest levels in more than a decade, med…
Asia pays the price as rich nations borrow like emerging markets
Global debt has passed US$365 trillion, and the cost of carrying it is now rising faster than any government can control. For investors with money anywhere in the world, few risks matter more over at least the next two years. Asia funds a large share of Western borrowing through its central bank reserves and its […]
Increased government spending, investments in artificial intelligence and defense needs are fueling the new borrowing cycle - The threat to economies
Al Bawaba
albawaba.netA disaster for the global economy... debt exceeds $365 trillion to touch total global debt + $10 trillion during the first half of 2026, reaching a record level of over $365 trillion...
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