Global Debt Surges to Unprecedented USD346T in Q3

(MENAFN) Worldwide debt surged to an unprecedented $346 trillion during the third quarter of 2025, propelled primarily by government spending, the Institute of International Finance disclosed Tuesday in a new report.

The findings reveal aggregate global debt jumped over $26.4 trillion across the year's first nine months compared to $327.5 trillion recorded during the corresponding period in 2024.

Total debt relative to worldwide gross domestic product (GDP) hit 310% throughout this timeframe.

Debt expansion remained heavily concentrated between the US and China, though developed markets drove the majority of growth as major central banks implemented looser monetary policies this year.

Advanced economies accumulated $230.6 trillion in total debt by the third quarter, while emerging markets reached $115.1 trillion.

Substantial debt escalation occurred in the US, alongside France, Germany, and the UK.

Within emerging economies, Brazil, Russia, South Korea, Poland, and Mexico registered the steepest debt increases following China.

Public sector borrowing dominated worldwide debt growth, with the sharpest rises observed in China and the US, trailed by France, Italy, and Brazil.

Breaking down obligations by sector: household debt climbed to $64 trillion in the third quarter, non-financial corporate debt reached $99.3 trillion, government debt hit $105.8 trillion, and financial institution debt—including banks—totaled $76.6 trillion.

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