Global Debt Hits $365 Trillion, But Which Countries Are Most Indebted?
WASHINGTON — The world has passed another staggering debt milestone as global debt increased by more than $10 trillion in the first half of 2026, bringing total debt to nearly $365.5 trillion, a fresh record that underscores the growing financial burden facing governments, companies and households worldwide.
Data released by the Institute of International Finance (IIF) in its latest Global Debt Monitor show that the world’s debt pile continues to grow even as higher interest rates make borrowing more expensive.
The latest increase represents the sixth consecutive quarterly increase in global debt. Yet the pace of accumulation has slowed sharply: the world added about $21 trillion during the first half of 2025, more than twice the increase recorded in the first six months of the year.
Emerging markets are at the center of the latest wave of borrowing. Their combined debt rose from about $6.5 trillion to about $110.6 trillion in the first half of 2026. China accounts for the largest share of this increase. Excluding China, debt to emerging and developing economies still rose by about $1.7 trillion, to $38 trillion.
$365 trillion
The headline numbers are high, but the relationship between debt and economic output provides another perspective. Global debt is now about 310 percent of global GDP, down about 25 percent from the peak in early 2021. However, this reduction does not mean that the world has substantially reduced debt.
The broader figure of $365 trillion includes the four major sectors, governments, households, financial corporations and non-financial corporations, so it should not be confused with sovereign debt alone. Using the public debt figures provided in the IMF-style 2026 projections, the largest public debt piles are approximately:
| Rank | The country | Government debt |
|---|---|---|
| 1 | The United States | $40.7 trillion |
| 2 | China | $22.3 trillion |
| 3 | Japan | $9.0 trillion |
| 4 | Great Britain | $4.4 trillion |
| 5 | France | $4.3 trillion |
| 6 | Italy | $3.8 trillion |
| 7 | Germany | $3.5 trillion |
| 8 | India | $3.5 trillion |
| 9 | Canada | $2.8 trillion |
| 10 | Brazil | $2.5 trillion |
Debt-to-GDP ratios provide a better indication of how large government liabilities are relative to the size of the economy, although they also have important limitations. According to the 2026 projections provided, Japan’s public debt is about 204% of GDP, compared to Singapore’s at about 172%.
The US is around 126 percent, while Italy, Greece, Sudan and Bahrain are also among the economies with high government debt ratios. France, Canada and China are in the wide range of 100%–110% or higher by some estimates.
The IMF itself warns that loan figures may vary depending on methodology and coverage. Its 2026 Fiscal Monitor also states that global public debt was below 94 percent of GDP in 2025 and is projected to reach 100 percent by 2029 under baseline projections.
China’s position requires particular scrutiny because of its extensive debt burden beyond traditional central government debt. Debt projections can include local government financing vehicles as well as substantial corporate liabilities.
Perhaps the most important issue ahead is not just the size of the debt mountain, but the amount that must be continually rolled over. The IIF estimates that more than $30 trillion of debt in mature and emerging markets is approaching maturity, creating a huge need for refinancing.
How much did federal government debt increase in 28 months?
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