World debt soars 50% in a decade, exceeding GDP growth

ISTANBUL

Global debt surged by about 50% over the last decade, outpacing a 46% increase in global gross domestic product (GDP).

From the end of 2015 to the end of 2024, global debt rose by 49.2%, from $213.3 trillion to $318.4 trillion, an additional $105 trillion, data from the International Institute of Finance (IIF) shows.

Over the last 10 years, global GDP increased by approximately $35 trillion, reaching $110 trillion, according to the International Monetary Fund (IMF).

In other words, global debt now exceeds the world’s GDP by three times.

During the same 10-year period, household debt rose by 50% to $60.1 trillion, while debt for non-financial companies grew by 45% to $91.3 trillion. Financial firms saw the smallest increase at 33.4%, reaching a total of $71.4 trillion.

Government debt, meanwhile, surged by 67.7%, rising from $56.8 trillion at the end of 2015 to $95.3 trillion by the end of 2024.

Mature markets' debt soared by 34.3% to $214.3 trillion as of the end of 2024, and emerging markets' debt jumped by 92.7% to $103.7 trillion.

As for GDP, advanced economies saw a 41.7% increase, while emerging markets and developing economies posted a 53.2% rise.

The most impactful developments in the span of the past decade were the measures introduced to ease the severe economic effects of the COVID-19 pandemic.

While global GDP narrowed by around 2.5% year-on-year in 2020, according to the IMF, global debt rose by 13% over the same period, reaching $291.2 trillion.

Since the World Health Organization declared the pandemic in January 2020, global debt has increased by 23.2%, from $258.4 trillion to $318.4 trillion, according to IIF data.

Over the same period, global GDP expanded by about 26%, IMF figures showed.

World trade also surged during this time, doubling from around $16 trillion to about $33 trillion.

Economy snapshots

The US' total debt was at $97.83 trillion at the end of 2024, rising by 62.5% over the past decade.

This means the US is responsible for around a third of global debt.

During the same period, the world’s largest economy, the US, grew by 58.4%, which was less than the debt increase.

As for the euro area, total debt rose 22% to $54.5 trillion by the end of 2024.

The eurozone economy expanded by 38.5% in the 10-year period, growing faster than debt figures.

The UK’s debt increased by 12.5% over the past decade, while its GDP grew by 22.5%.

Russia's debt totaled $2.6 trillion as of the end of 2024, rising by 67.7%, while the Russian economy grew by 60.3%.

China's debt figures rose by 123.4% to $62.4 trillion over the same period, while its GDP expanded by 64.5%, about half the rate of its debt growth.