Global debt climbs to record $318T in 2024

By Mucahithan Avcioglu

ISTANBUL (AA) - The amount of global debt rose to a record high of $318 trillion last year, according to a report released by the Institute of International Finance (IIF) on Tuesday.

"Nearly $7 trillion was added to global debt in 2024, marking a new record annual high of $318 trillion," said the report. "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 climbed over 1.5% compared to 2023, reaching nearly 328% of GDP, which marked the first annual increase in debt ratios since 2020, according to the report.

Around 65% of the 2024 rise in global debt came from emerging markets, primarily China, India, Saudi Arabia, and Türkiye.

Meanwhile, developed markets' debt accumulation was mostly concentrated in the US, Britain, Canada, and Sweden.

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, according to the IIF.