Global debt jumps $10 trillion in six months

The International Institute of Finance (IIF) stated that total global debt rose by more than $10 trillion in the first half of 2026, reaching a record high of over $365 trillion, driven largely by emerging markets.

In its latest report titled “Global Debt Monitor,” the IIF explained that debt in emerging markets increased by $6.5 trillion to exceed $110 trillion, led by China, while debt accumulation in advanced economies slowed sharply.

The overall increase was less than half of the $21 trillion added during the same period of the previous year, as rising interest rates, higher debt servicing costs, elevated energy prices, and the conflict with Iran negatively impacted borrowing.

Governments and non-financial corporations accounted for most of this increase, with both sectors recording new record highs. Global debt stood at approximately 310% of gross domestic product (GDP), about 25 percentage points below its peak in early 2021. However, the IIF noted that this largely reflects the impact of inflation in raising nominal GDP, rather than a genuine reduction in debt levels.

The report comes as U.S. Treasury yields surged to their highest levels in several years, driving up refinancing costs for governments.