Global debt just hit $365 trillion in H1 2026—up over $10 trillion in six months. That's not a typo.
Emerging markets led the surge, adding $6.5 trillion to reach $110 trillion. Strip out China, and EM debt still hit a record $38 trillion. Governments and companies are borrowing at a pace we've never seen.
Debt-to-GDP now sits around 310%. Sure, that's down 25 points from the 2021 peak—but not because anyone deleveraged. It's just inflation pumping up nominal GDP and making the math look better on paper.
Here's the kicker: developed economies paid $3.3 trillion in interest on government debt last year. That's more than global AI spending ($2.6T), defense ($2.3T), and clean energy ($2.3T). G7 interest payments alone jumped 85% year-over-year.
We're not managing debt anymore. We're servicing it—and it's crowding out everything else. This isn't a distant problem. It's happening now, and the bill keeps getting bigger.
Emerging markets led the surge, adding $6.5 trillion to reach $110 trillion. Strip out China, and EM debt still hit a record $38 trillion. Governments and companies are borrowing at a pace we've never seen.
Debt-to-GDP now sits around 310%. Sure, that's down 25 points from the 2021 peak—but not because anyone deleveraged. It's just inflation pumping up nominal GDP and making the math look better on paper.
Here's the kicker: developed economies paid $3.3 trillion in interest on government debt last year. That's more than global AI spending ($2.6T), defense ($2.3T), and clean energy ($2.3T). G7 interest payments alone jumped 85% year-over-year.
We're not managing debt anymore. We're servicing it—and it's crowding out everything else. This isn't a distant problem. It's happening now, and the bill keeps getting bigger.
