Global debt ratios have fallen back to pre-pandemic levels, reaching 231% of GDP, as private sector deleveraging offsets still elevated public borrowing (chart above). While both public and private nonfinancial debt have declined from pandemic peaks, government debt remains structurally higher due to extensive fiscal support and modest growth.
In developed markets, rising public debt, now around 106% of GDP, has helped sustain economic activity but pushed up bond yields, raising concerns about crowding out private investment. The U.S. and U.K. have driven much of this increase. Meanwhile, emerging markets retain lower overall debt burdens, though private sector leverage is rising rapidly, particularly in China and other large economies. As economies mature, the growth generated per unit of debt tends to diminish, highlighting increasing risks to long term productivity and sustainability. Download the full publication by completing the form to the right.
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