Jakarta, CNBC Indonesia \u2014 According to data from the International\nMonetary Fund (IMF), total public government debt worldwide is recorded\nat US$111 trillion in 2025. This figure represents an increase from the\nlevel in 2000, which stood at US$19.7 trillion.<\/p>\n
This global rise in debt levels is primarily influenced by fiscal\npolicies and government responses in various countries to the 2008\nfinancial crisis and the handling of the pandemic in 2020.<\/p>\n
Portion of Debt in the United States and China<\/p>\n
The United States and China have recorded the largest amounts of\npublic debt compared to other countries. The United States currently has\ndebt amounting to US$38.3 trillion, while China stands at US$18.7\ntrillion.<\/p>\n
The combined debt of these two countries accounts for around 51% of\ntotal global government debt. Debt growth in the United States has\nincreased since 2020 due to pandemic fund allocations, and it continues\nbecause of budget deficits and additional loan interest costs.<\/p>\n
In China, government debt has grown at an average of around 18% per\nyear since 2000. The majority of these funds have been used by local\ngovernments to finance infrastructure projects and property sector\ndevelopment.<\/p>\n
The following is a breakdown of government debt from 2000 to 2025 in\ntrillions of US dollars based on IMF data.<\/p>\n
Phases of Global Debt Changes Since 2000<\/p>\n
The journey of global public debt since 2000 can be divided into\nseveral phases. In the period from 2000 to 2007, debt growth proceeded\nin line with global Gross Domestic Product (GDP) growth, rising from\nUS$19.7 trillion to US$35.8 trillion.<\/p>\n
Changes occurred during the 2008-2009 financial crisis, when\ngovernments allocated funds for stimulus programmes and bank bailouts.\nThis raised total global debt from US$35.8 trillion to US$45.5 trillion\nin two years.<\/p>\n
From 2010 to 2012, a debt crisis unfolded in Europe, where countries\nlike Greece, Italy, and Spain faced rising borrowing costs, followed by\nbudget adjustments in the eurozone.<\/p>\n
Entering 2013 to 2019, relatively low global interest rates allowed\ngovernments to increase debt allocations without significant fiscal\npressure, bringing total debt from US$60.7 trillion to US$73.9\ntrillion.<\/p>\n
Subsequently, in 2020, funding needs during the Covid-19 pandemic\ncaused global debt to rise from US$73.9 trillion to US$84.9 trillion in\none year.<\/p>\n
Currently, in the period from 2022 to 2025, higher interest rates\nhave resulted in increased costs for servicing that debt, particularly\nfor the United States and groups of developing countries.<\/p>\n
Debt Conditions in Japan and the European Union<\/p>\n
Debt movements in Japan and the European Union have their own\npatterns compared to total global debt. Japan\u2019s debt reached its highest\nfigure at US$14.2 trillion in 2012 and nominally fell to US$9.8 trillion\nin 2025.<\/p>\n
This decline in US dollar calculations is partly influenced by the\nweakening of the yen against the dollar. However, in domestic currency\nterms, Japan\u2019s debt-to-GDP ratio remains above 230%.<\/p>\n
In the European region, the European Union\u2019s debt value once\nexperienced a decline from US$15.5 trillion in 2021 to US$14.3 trillion\nin 2022 as a result of post-crisis budget consolidation.<\/p>\n
That figure then recorded an increase again to US$17.6 trillion in\n2025. This latest rise aligns with decisions by European Union member\nstates to increase budget spending allocations for the defence and\nenergy sectors.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/global-debt-continues-to-pile-up-interest-burden-begins-to-haunt-1774792278", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }