## Global Debt Remains Above 235% of World GDP

_IMF Blog, September 17, 2025_

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## Bibliographic details
- Authors: Vitor Gaspar, Carlos Eduardo Goncalves, Marcos Poplawski-Ribeiro
- Published: September 17, 2025

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### Key findings
- 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.

### Sectoral debt trends
- 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.

### Diverging trends across countries and income groups
- 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.

### Drivers of public and private debt patterns
- 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.

### Policy recommendations
- 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.

### Key statistics (exact figures)
- 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.*

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## Content in this bundle

- **Chapter 1**
  - [Chapter 1 (Markdown version)](/-/media/files/publications/fiscal-monitor/2025/english/ch1.pdf.md){rel="alternate" type="text/markdown"}
  - [Chapter 1 (PDF)](/-/media/files/publications/fiscal-monitor/2025/english/ch1.pdf){rel="external" type="application/pdf"}

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## References

- [Global Debt Database](https://www.imf.org/external/datamapper/datasets/GDD)
- [Fiscal Monitor](https://www.imf.org/en/Publications/FM/Issues/2025/04/23/fiscal-monitor-April-2025)
- [subdued growth prospects](https://www.imf.org/en/Blogs/Articles/2024/12/02/persistent-fall-in-private-borrowing-brings-global-debt-down)
- [low-income countries](https://www.imf.org/en/Publications/Policy-Papers/Issues/2025/04/21/Macroeconomic-Developments-and-Prospects-in-Low-Income-Countries-2025-566335)

_Source: https://www.imf.org/en/blogs/articles/2025/09/17/global-debt-remains-above-235-of-world-gdp_