Toronto, September 25, 2025 – Worldwide debt has climbed to a new high of about US $338 trillion in the second quarter of 2025. That’s an increase of roughly US $21 trillion in just six months, showing that governments, businesses, and households are still borrowing even while interest rates are high.
Many countries increased spending to support their economies after the pandemic and to cover energy and defense needs. Companies also continued taking loans for projects such as technology upgrades and supply-chain improvements.
Economists warn that paying back this record debt will become harder if interest rates remain high. Countries may face bigger bills when old loans are renewed. Emerging markets have more than US $3 trillion in debt coming due this year, and even strong economies such as Canada, the United States, and Eurozone nations could have less room to fund new programs.
Canada still has a solid credit rating, but federal and provincial governments have been running deficits to support healthcare, housing, and infrastructure. Experts say that a long period of high interest rates could raise Canada’s debt-servicing costs and limit spending on future projects.
International agencies recommend keeping government budgets under control, supporting steady economic growth to boost revenues, and coordinating global monetary policy to avoid sudden market shocks. Despite the risks, analysts note that the world economy is still showing resilience, with moderate inflation and steady employment helping countries manage the burden.
This report is based on the Institute of International Finance (IIF)’s latest global debt statistics, which were widely covered by many outlets on September 25, 2025.