Global debt surged to an unprecedented $348 trillion by the end of 2025, according to the Institute of International Finance (IIF). The report highlights a $29 trillion increase in global debt over the past year, marking the fastest annual growth since the pandemic's onset. This surge is largely attributed to persistent fiscal deficits in major economies, with government debt contributing over $1 trillion to last year's increase. The IIF's "Global Debt Monitor" indicates that while global debt as a percentage of GDP slightly decreased to 308% in 2025, this was mainly due to advanced economies. In contrast, emerging market debt as a percentage of GDP reached a historic high of over 235%, underscoring the growing financial pressures in these regions.