Global Debt Hits Record $348 Trillion in 2025 Amid Surge in Government Spending

Global debt reached an unprecedented level of $348 trillion by the end of 2025, according to recent financial data. The global debt pile expanded by nearly $29 trillion in just a single year, marking the most rapid accumulation since the COVID-19 pandemic surge. This significant increase was primarily driven by a sharp rise in government spending across major global economies. The Institute of International Finance (IIF) warned that such rapid borrowing heightens sovereign risks and increases overall fiscal vulnerability. Analysts suggest that these record debt levels could exert upward pressure on bond yields, such as the US10Y, while raising long-term inflation concerns. Consequently, investors may increasingly look toward safe-haven assets like gold (GLD) to mitigate risks associated with fiscal instability.