Global debt hits record $365 trillion as US, China drive borrowing surge

According to the Institute of International Finance, worldwide debt rose by roughly $10 trillion in January to June 2026, reaching a record above $365 trillion. China and the United States accounted for most of that climb in borrowing.

The IIF's latest Global Debt Monitor covers government, household, financial and corporate borrowing across more than 100 advanced and developing economies. The increase was the sixth successive quarterly rise in global debt. US federal debt alone now makes up more than 10% of the total across those four sectors.

Emre Tiftik, who heads global markets and policy work at the IIF, said the current borrowing wave differs from earlier ones. Previous surges followed major shocks such as the 2008 financial crisis and the Covid-19 pandemic. This time, however, the rise is taking place as fiscal strains deepen and doubts about debt sustainability grow.