Global debt growth slows in 2024, but debt-to-GDP rises for first time since pandemic

The Institute of International Finance (IIF) reported that while the expansion of global debt decelerated in 2024 compared to the previous year, the debt-to-gross domestic product (GDP) ratio rose by over 1.5% from 2023, marking its first annual increase since 2020.

Meanwhile, despite the slowdown, global debt still reached a record high of $318 trillion.

“Nearly $7 trillion was added to global debt in 2024, marking a new record annual high of $318 trillion,” said the IIF report released on Tuesday.

“Total global debt-to-GDP rose for the first time in four years, as GDP growth slowed down, and inflation pressures eased.”

While global debt soared approximately $15 trillion in 2023, it continued the upward trend in 2024, with a $7 trillion increase.

The global debt-to-GDP ratio reached nearly 328% of GDP.

Emerging markets drove global debt growth

Other key insights from the report are as follows:

• Around 65% of the 2024 rise in global debt came from emerging markets, primarily China, India, Saudi Arabia, and Türkiye.
• Developed markets’ debt accumulation was mostly concentrated in the U.S., U.K., Canada, and Sweden.
• The total debt of developed countries climbed to $214.3 trillion last year, and the combined debt of developing countries was $103.7 trillion.

• Household debt amounted to $60.1 trillion last year, while public sector debts were $95.3 trillion.
• Debts of non-financial companies came in at $91.3 trillion and debts of financial institutions were $71.4 trillion.