Global debt increased by $10 trillion during the first half of 2026, reaching a record $365.5 trillion, driven mainly by higher public-sector and non-financial corporate borrowing, according to the latest Global Debt Monitor published by the Institute of International Finance (IIF).

The report showed that global public debt rose to $110.5 trillion, while debt held by non-financial companies reached $105.1 trillion. Financial sector debt stood at $84.3 trillion, and household debt totaled $65.7 trillion.

Emerging markets, led by China, accounted for the largest increase in borrowing, with total debt reaching $110.6 trillion. Total debt in advanced economies climbed to $255 trillion.

The IIF said the global debt-to-GDP ratio stabilized at around 310 per cent during the reporting period.

The report also highlighted the growing burden of debt servicing in advanced economies. Annual interest payments among G7 countries increased by 85 per cent, while governments paid around $3.5 trillion in interest on sovereign debt—an amount exceeding combined global spending in areas such as artificial intelligence, defense and energy.

Global debt breakdown and Türkiye outlook

The IIF noted that Türkiye reduced its debt ratios across all sectors except households, describing the trend as a positive sign of macroeconomic rebalancing compared with many other economies.(ILKHA)