Global debt surpasses $365T, hitting a new record, IIF report says

The Institute of International Finance, or IIF, says global debt increased by $10T in the first half of 2026, surpassing $365T in total, with emerging markets accounting for much of the increase (1, 2).

• The IIF's Global Debt Monitor covers government, household, and corporate borrowing for over 100 economies, both emerging and mature markets (3, 4).
• Its latest report, released Wednesday, noted that global debt has increased for the 6th straight quarter, although the $10T rise in the first half of 2026 was less than half of the $21T recorded during the same period last year (1, 2).
• Debt in emerging markets increased by $6.5T to over $110T total. The South China Morning Post, citing data from the IIF, calculated that China accounted for $4.8T of the increase, reaching a total debt of $72.5T (2).
• U.S. debt rose by $3.5T, reaching $111.8T. These figures include borrowing across all sectors monitored, not just government debt (2).
• Higher interest rates, rising energy prices, and Iran war uncertainties have slowed borrowing, particularly among households and financial institutions. However, government and non-financial corporate debt have both reached new records, driven by AI and defense spending (3, 4).
• CNBC noted that bond yields in the U.S., France, Japan, and the U.K. are reaching the highest levels seen in over a decade, as concerns about inflation, energy costs, growth, and government spending persist (5).
• The growing cost of debt is becoming notable. According to CNBC, advanced economies spent more than $3.3T servicing internationally traded government bonds last year. That exceeded estimated worldwide spending on each of the following: AI ($2.6T), defense ($3.1T), and clean energy ($2.3T) (5).
• Additionally, more than $30T in debt is approaching maturity across developed and emerging markets, Forbes noted (6).
• The IIF also warned that short-term political responses to fiscal pressures could leave governments with difficult long-term debt problems, CNBC reported (5).
• In a report also published on Wednesday, the Organisation for Economic Co-operation and Development, or OECD, called for tighter control of government spending. They noted that in many major economies, long-term bond yields have reached the highest levels seen in at least 15 years (7).
• The OECD said governments need to control spending, improve efficiency in the public sector, and increase revenues in order to maintain their ability to react to major economic shocks (7).

Sources & Further Reading

1. "IIF Global Debt Monitor: A Debt-intensive Future—and Growing Risks for Global Markets." Institute of International Finance. September 23, 2026.
2. "Led by China and US borrowing, the world now owes a record US$365 trillion debt: IIF." South China Morning Post. September 23, 2026.
3. "Institute of International Finance Monitors." IIF. 2026.
4. "IIF Global Debt Monitor: Financing the Future — Structural Changes and Growing Risks for Global Debt Markets." Institute of International Finance. September 23, 2026.
5. "Global debt tops $365 trillion as economists sound alarm over ‘vicious cycle’." CNBC. September 24, 2026.
6. $365 Trillion And Rising: Inside The World's Debt Rollover Crunch. Forbes. September 23, 2026.
7. OECD Economic Outlook, Interim Report September 2026. OECD. September 23, 2026.