Global Debt Continues to Pile Up, Interest Burden Begins to Haunt
Jakarta, CNBC Indonesia — According to data from the International Monetary Fund (IMF), total public government debt worldwide is recorded at US$111 trillion in 2025. This figure represents an increase from the level in 2000, which stood at US$19.7 trillion.
This global rise in debt levels is primarily influenced by fiscal policies and government responses in various countries to the 2008 financial crisis and the handling of the pandemic in 2020.
Portion of Debt in the United States and China
The United States and China have recorded the largest amounts of public debt compared to other countries. The United States currently has debt amounting to US$38.3 trillion, while China stands at US$18.7 trillion.
The combined debt of these two countries accounts for around 51% of total global government debt. Debt growth in the United States has increased since 2020 due to pandemic fund allocations, and it continues because of budget deficits and additional loan interest costs.
In China, government debt has grown at an average of around 18% per year since 2000. The majority of these funds have been used by local governments to finance infrastructure projects and property sector development.
The following is a breakdown of government debt from 2000 to 2025 in trillions of US dollars based on IMF data.
Phases of Global Debt Changes Since 2000
The journey of global public debt since 2000 can be divided into several phases. In the period from 2000 to 2007, debt growth proceeded in line with global Gross Domestic Product (GDP) growth, rising from US$19.7 trillion to US$35.8 trillion.
Changes occurred during the 2008-2009 financial crisis, when governments allocated funds for stimulus programmes and bank bailouts. This raised total global debt from US$35.8 trillion to US$45.5 trillion in two years.
From 2010 to 2012, a debt crisis unfolded in Europe, where countries like Greece, Italy, and Spain faced rising borrowing costs, followed by budget adjustments in the eurozone.
Entering 2013 to 2019, relatively low global interest rates allowed governments to increase debt allocations without significant fiscal pressure, bringing total debt from US$60.7 trillion to US$73.9 trillion.
Subsequently, in 2020, funding needs during the Covid-19 pandemic caused global debt to rise from US$73.9 trillion to US$84.9 trillion in one year.
Currently, in the period from 2022 to 2025, higher interest rates have resulted in increased costs for servicing that debt, particularly for the United States and groups of developing countries.
Debt Conditions in Japan and the European Union
Debt movements in Japan and the European Union have their own patterns compared to total global debt. Japan’s debt reached its highest figure at US$14.2 trillion in 2012 and nominally fell to US$9.8 trillion in 2025.
This decline in US dollar calculations is partly influenced by the weakening of the yen against the dollar. However, in domestic currency terms, Japan’s debt-to-GDP ratio remains above 230%.
In the European region, the European Union’s debt value once experienced a decline from US$15.5 trillion in 2021 to US$14.3 trillion in 2022 as a result of post-crisis budget consolidation.
That figure then recorded an increase again to US$17.6 trillion in 2025. This latest rise aligns with decisions by European Union member states to increase budget spending allocations for the defence and energy sectors.