Global Debt Rose to $365.5 Trillion in the First Half of 2026
According to Institute of International Finance data, global debt reached $365.5 trillion in the first half of 2026. While government and corporate debt broke records, China led the increase.
According to the Global Debt Monitor report published by the Institute of International Finance, total debt worldwide increased by more than $10 trillion in the first half of 2026, reaching $365.5 trillion.
Slowdown in Debt Growth
According to the report prepared by the Institute of International Finance, the increase in debt in the first half of the year was less than half of the $21 trillion rise recorded in the same period last year. High interest rates, servicing costs, rising energy prices, and pressures brought by the conflict with Iran played a role in this slowdown.
Government and Corporate Debt at Record Highs
A large portion of the growth in global debt was driven by government and non-financial corporate debt, with both sectors reaching record levels. While the slowdown in debt growth was more pronounced in financial institutions and households, the total increase remained above the 5-year average.
Sectoral Debt Distribution
According to the distribution as of the second quarter of the year, household debt reached $65.7 trillion and non-financial corporate debt reached $105.1 trillion. In the same period, government debt rose to $110.5 trillion, while financial sector debt reached a size of $84.3 trillion.
Emerging Markets and China's Role
The bulk of the global debt increase originated from emerging markets. The total debt of these countries rose to $110.6 trillion, with China leading this increase. Meanwhile, the total debt of advanced markets was recorded at $255 trillion.
GDP Ratio and Inflation Impact
It was reported that the ratio of global debt to Gross Domestic Product stood at around 310 percent. Although this ratio remains 25 percentage points below the peak at the beginning of 2021, it was stated that the improvement was largely driven by high inflation. In Turkey, the ratio of household debt to GDP was 10.6 percent in the second quarter.
Interest Costs in G7 Countries
Average government borrowing costs in G7 countries saw their highest level since mid-2008. Advanced economies made more than $3.5 trillion in interest payments over the past year for government bonds traded in international markets.