Emerging Markets Push Global Debt to Record $365 Trillion

Global Markets23 days ago

Interest payments on marketable government debt in developed nations exceeded $3.3T over the past year, topping global spending on AI at $2.6T, defense at $3.1T, and clean energy at $2.3T. Annual government interest payments across the G7 surged 85% year-on-year, while the aggregate debt across households, corporations, and governments grew by $10T in the first half of 2026 to reach a total of $365T.

Emerging markets fueled much of the growth by adding $6.5T to reach $110.6T, with China leading the surge, though debt in emerging and developing economies excluding China also hit $38T. Total global debt currently represents 310% of global GDP. This ratio is 25 percentage points below its early 2021 peak, a decrease driven by inflation boosting nominal GDP rather than a reduction in debt levels.

Mapped to your portfolio

Possible scenarios

42%Debt Burden Contained+0.1%
23%China Debt Managed-0.1%
20%EM Rollover Stress-0.7%

Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.

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Emerging Markets Push Global Debt to Record $365 Trillion

In this story

Emerging market China G7

Portfolio

SPY
State Street SPDR S&P 500 ETF Trust
100%

Portfolio

SPY
State Street SPDR S&P 500 ETF Trust
100%

Mapped to your portfolio

Possible scenarios

42%Debt Burden Contained+0.1%
23%China Debt Managed-0.1%
20%EM Rollover Stress-0.7%

Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.