Data: Global debt climbs to $348 trillion, with sovereign leverage being the main driving force.

PANews reported on February 26th that, according to the Institute of International Finance (IIF), the latest data shows that global debt will rise to approximately $348 trillion by the end of 2025, an increase of nearly $29 trillion from the previous year, marking the fastest annual growth rate since the beginning of the pandemic. Government debt is expected to increase by over $10 trillion. The report states that the global debt-to-GDP ratio is approximately 308%, with a slight decline in developed economies, but emerging market debt ratios have risen to a new high of over 235%. The current debt expansion is mainly driven by persistent fiscal deficits, and the rising proportion of sovereign debt makes global balance sheets more sensitive to interest rate fluctuations and investor confidence. The IIF predicts that emerging markets and developed markets will need to repay approximately $9 trillion and over $20 trillion in debt respectively by 2026, keeping global debt pressure at a high level.