Global Debt Remains Above 235% of World GDP

IMF Blog, September 17, 2025

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Global debt stabilized but remained just above 235 percent of global gross domestic product.
Total debt in US dollar terms increased slightly to $251 trillion.
Private debt declined to under 143 percent of GDP, the lowest level since 2015.
Public debt rose to nearly 93 percent of GDP.
In dollar terms, public debt rose to $99.2 trillion and private debt decreased to $151.8 trillion.

Public debt
- Rose to nearly 93 percent of GDP globally.
- Driven by a persistently high global fiscal deficit averaging around 5 percent of GDP, legacy Covid-19 costs (such as subsidies and social benefits), and rising net interest costs.
Private debt
- Declined to under 143 percent of GDP, reflecting a reduction in household liabilities and little change in non-financial corporate debt at the global level.
- Drivers vary by country and income group: reduced corporate borrowing in many advanced economies, strong US corporate balance sheets and cash holdings, and increased non-financial corporate borrowing in China.

United States
- General government debt rose to 121 percent of GDP (from 119 percent).
- Private debt experienced a significant drop of 4.5 percentage points, to 143 percent of GDP).
China
- Public debt increased to 88 percent of GDP (from 82 percent).
- Private debt increased by 6 points, to 206 percent of GDP.
Advanced economies (excluding the US)
- Public debt fell by more than 2.5 points to 110 percent of GDP.
- Increases in some large advanced economies (France and the UK) were offset by declines in Japan and smaller economies such as Greece and Portugal.
Emerging markets and developing economies (excluding China)
- Public debt edged down to under 56 percent of GDP on average.
- Private borrowing surged in larger economies like Brazil, India, and Mexico, but declined in Chile, Colombia, and Thailand.
Low-income countries
- Recent debt dynamics reflect limited financial development, tight liquidity conditions, and crowding-out effects linked to the sovereign debt–private debt nexus.

Public debt increases
- Main driver: persistently high global fiscal deficit averaging around 5 percent of GDP.
- Legacy Covid-19 costs (subsidies and social benefits) and rising net interest costs.
Private debt declines
- In advanced economies: companies borrowing less in response to subdued growth prospects (continuation of a trend started in 2023).
- In the US: strong balance sheet positions and cash holdings reducing corporate borrowing.
- Crowd-ing out effect in some countries: heavy public borrowing limits credit availability or raises its cost for the private sector.
Private debt increases
- China: led by non-financial corporate debt; pickup reflects still-ample credit supply to support strategic sectors despite property sector weakness; household debt edged lower due to soft mortgage demand and employment/wage concerns.
- Other large emerging markets: driven by high interest rates and non-performing loans (Brazil), improved near-term growth prospects (India), and corporate mergers and acquisitions.
- Countries with weaker growth prospects (e.g., Colombia, Thailand) saw private debt declines.

Governments should prioritize gradual fiscal adjustments within a credible medium-term plan to reduce public debt.
Fiscal consolidation should be designed to avoid crowding-out private borrowing and investment.
Foster an environment that boosts economic growth and reduces uncertainty to ease public debt burdens and encourage private sector investment.

Global debt: just above 235 percent of global gross domestic product.
Total debt (US dollar terms): $251 trillion.
Public debt (global): nearly 93 percent of GDP.
Private debt (global): under 143 percent of GDP.
Public debt (US dollar terms): $99.2 trillion.
Private debt (US dollar terms): $151.8 trillion.
US general government debt: 121 percent of GDP (from 119 percent).
China public debt: 88 percent of GDP (from 82 percent).
Private debt change in the United States: drop of 4.5 percentage points, to 143 percent of GDP).
Private debt change in China: increase of 6 points, to 206 percent of GDP.
Public debt in advanced economies excluding the US: 110 percent of GDP (fell by more than 2.5 points).
Public debt in emerging markets and developing economies excluding China: under 56 percent of GDP on average.
Global fiscal deficit: averaging around 5 percent of GDP.

Vitor Gaspar, Carlos Eduardo Goncalves, Marcos Poplawski-Ribeiro — September 17, 2025.