Global debt holds steady above 235% of world GDP

September 19, 2025 (MLN): Global debt remained broadly unchanged, standing just above 235% of world GDP. A sharp pullback in private-sector lending offset a continued rise in government borrowing.

Private debt fell to below 143% of GDP, the lowest since 2015, as households reduced liabilities and corporate borrowing remained flat. By contrast, public debt climbed to nearly 93%, according to the latest update from the IMF’s Global Debt Database

In dollar terms, total global debt inched up to $251tr. Public debt rose to $99.2tr, while private debt slipped to $151.8tr.

SOURCE: IMF 2025 Global Debt Database, and IMF staff calculations.

The IMF noted that these averages obscure wide differences between countries and income groups.

The US and China remain central to global debt dynamics, but many advanced and emerging economies still face historically high debt and deficit levels.

In the US, general government debt increased to 121% of GDP from 119%. China saw a sharper rise, to 88% from 82%.

Excluding the US, public debt in advanced economies fell more than 2.5 points to 110% of GDP, with reductions in Japan, Greece, and Portugal outweighing increases in France and the UK.

In emerging markets and developing economies, excluding China, public debt edged down slightly to just under 56% of GDP.

Private debt patterns diverged. The US recorded a steep drop of 4.5 points to 143% of GDP, while China’s private debt climbed 6 points to 206%. Elsewhere, borrowing grew in large emerging economies such as Brazil, India, and Mexico, but fell in Chile, Colombia, and Thailand.

In China, the latest surge in private debt was driven mainly by non-financial corporations. Despite ongoing weakness in the property sector, credit remains readily available, particularly for industries deemed strategically important.

Household borrowing, however, slipped slightly as weak mortgage demand and concerns over job security and wage growth kept consumers cautious.

Across other major emerging markets, the picture was more mixed. In Brazil, higher private debt was linked to elevated interest rates and the strain of rising non-performing loans.

India saw stronger borrowing on the back of improved near-term growth prospects, while corporate mergers and acquisitions contributed to higher leverage elsewhere. By contrast, countries such as Colombia and Thailand recorded declines, reflecting weaker economic outlooks.

Low-income economies faced a different set of challenges. Limited financial development, tighter liquidity conditions, and the crowding-out effect of heavy government borrowing weighed on private-sector credit.

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