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According to S&P Global Ratings' forecast, in 2025, countries globally will raise their borrowing by a total of 3% to reach $12.3 trillion. Therefore, global government debt persists in its upward trend that started in 2022.
S&P analysts attribute the primary causes for fresh borrowings to "sustained inflationary pressure, ambiguity regarding global trade policy, and the period of elevated interest rates, resulting in expensive servicing of new borrowings in developed markets."
In 2025, the U.S. will still be the biggest global borrower, holding $4.9 trillion in long-term debt, which accounts for 40% of the overall total.
China ($2.1 trillion, 17% of the worldwide total) ranks second in government debt, having overtaken Japan in this category last year. S&P estimates indicate that China is set to issue approximately $370 billion in new debt this year (+22%), marking a record high for any country.
In contrast to China and the US, advanced economies in Europe will sustain their new borrowing at last year's rate of $1.8 trillion, equating to 3% of their GDP. Nonetheless, in 2025, new loans in Europe will still be double what they were prior to the pandemic.
The amount of new loans for developing nations in the EMEA region (Europe, Middle East, Africa) will not increase this year: $624 billion (compared to last year's $630 billion), and the proportion of government debt to GDP will stay at 7%
source: spglobal.com
S&P analysts attribute the primary causes for fresh borrowings to "sustained inflationary pressure, ambiguity regarding global trade policy, and the period of elevated interest rates, resulting in expensive servicing of new borrowings in developed markets."
In 2025, the U.S. will still be the biggest global borrower, holding $4.9 trillion in long-term debt, which accounts for 40% of the overall total.
China ($2.1 trillion, 17% of the worldwide total) ranks second in government debt, having overtaken Japan in this category last year. S&P estimates indicate that China is set to issue approximately $370 billion in new debt this year (+22%), marking a record high for any country.
In contrast to China and the US, advanced economies in Europe will sustain their new borrowing at last year's rate of $1.8 trillion, equating to 3% of their GDP. Nonetheless, in 2025, new loans in Europe will still be double what they were prior to the pandemic.
The amount of new loans for developing nations in the EMEA region (Europe, Middle East, Africa) will not increase this year: $624 billion (compared to last year's $630 billion), and the proportion of government debt to GDP will stay at 7%
source: spglobal.com
