Global debt reached a record $318 trillion

Global debt increased by $7 trillion in 2024, reaching a record $318 trillion, according to data from the Institute of International Finance (IIF). This was the first increase in the debt-to-global GDP ratio in four years, due to a slowdown in economic growth. The highest borrowing levels will remain in the USA, France, China, India and Brazil.

The IIF focuses on the risks associated with the actions of «bond activists» – investors seeking to reduce budget deficits and debt burden through higher interest rates. The report highlights that fiscal issues are particularly relevant for countries with polarized political systems.

In the US, markets have been reacting calmly so far, thanks to economic activity and the status of Treasury bonds as a reliable asset. However, other countries may face serious difficulties. 

The growth rate of debt has slowed compared to 2023, when the increase was $16 trillion. The IIF predicts a further decline in borrowing due to global economic instability and high credit costs, which will curb demand for them in the private sector.