Global debt surpasses $365 trillion in the first half of 2026

Yesterday 16:00

By: Azzat Manal

Global debt surpasses $365 trillion in the first half of 2026

Global debt continued to rise during the first half of 2026, exceeding $365 trillion and reaching another record level, according to the latest assessment from the Institute of International Finance (IIF). The increase highlights the continued reliance of governments, companies and households on borrowing despite higher financing costs and a more uncertain global economic environment.

The global debt stock increased by more than $10 trillion during the first six months of the year. However, the pace of accumulation was considerably slower than during the same period in 2025, when worldwide debt reportedly increased by around $21 trillion.

Emerging markets accounted for a substantial share of the new borrowing. Their combined debt rose by roughly $6.5 trillion from the beginning of 2026, pushing the total above $110 trillion. The increase reflects continued financing needs across developing economies, including spending related to investment, public finances and economic development.

Advanced economies, meanwhile, recorded a more moderate increase in debt. Higher interest rates have made new borrowing and debt refinancing more expensive, encouraging some governments, businesses and households to take a more cautious approach to additional financing.

Governments and non-financial companies represented the largest contributors to the latest increase in global liabilities. The figures underline the continuing pressure on both the public and private sectors as borrowers navigate elevated interest costs and changing financial conditions.

Measured against the size of the world economy, global debt stood at around 310% of gross domestic product. That ratio remains below the peak reached in early 2021, but the decline does not necessarily mean that the absolute debt burden has fallen. Changes in nominal GDP, including those associated with inflation, can reduce the debt-to-GDP ratio even while the amount of debt continues to increase.

The evolution of global borrowing is also being shaped by wider economic conditions. Higher energy prices, geopolitical uncertainty and tighter financial conditions have contributed to a more cautious lending and borrowing environment. At the same time, differences in interest rates, currencies and economic growth continue to affect how individual countries manage their debt obligations.

For emerging markets in particular, the cost of servicing foreign-currency debt can become more challenging when financing conditions tighten or exchange rates move unfavorably. Governments and companies therefore face the dual task of meeting existing repayment obligations while maintaining access to funding for investment and economic activity.

The latest figures illustrate the scale of borrowing across the global economy and the continued importance of debt sustainability for policymakers and financial institutions. Although the pace of debt accumulation has slowed compared with the previous year, the overall level remains historically high, leaving economies sensitive to changes in interest rates, inflation, growth and financial market conditions.