Global Debt Reaches Record $324 Trillion in Q1 2025, IIF Reports
by Emmitt Barry, Worthy News Correspondent
(Worthy News) – Global debt rose by $7.5 trillion in the first quarter of 2025 to a record $324 trillion, driven by debt accumulation in China, France, and Germany, according to the Institute of International Finance (IIF).
“While the sharp depreciation of the U.S. dollar contributed to the rise, the Q1 increase was more than quadruple the average quarterly increase since 2022,” the IIF said.
Emerging markets hit a record debt-to-GDP ratio of 245%, with total debt surging by over $3.5 trillion. China accounted for $2 trillion of the rise, with its government debt-to-GDP ratio expected to hit 100% by year-end.
The IIF warned of $7 trillion in emerging market debt redemptions in 2025 and $19 trillion for developed economies. Prolonged policy uncertainty could force more accommodative fiscal measures, the report added, as inflation risks rise amid potential U.S. Treasury supply increases.
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