The worldwide debts increased by approximately $7 trillion last year, soaring to $318 trillion, setting a new record. When considering the ratio of debts to GDP in Turkey, household debts dropped to 10%, non-financial corporate debts to 39.7%, public debts to 26.6%, and debts of financial companies like banks to 16.3% by the end of last year. The International Institute of Finance (IIF) published the “Global Debt Monitor” report. According to the report, the global debt amount reached $318 trillion by 2024, with an increase of around $7 trillion, marking a record high. This increase fell below last year’s rise of over $16 trillion due to the Federal Reserve’s easing cycle, amid concerns about the impact of US trade and immigration policies on inflation. The slowdown in global borrowing, seen as a prudent stance considering the significantly increased uncertainty, was noted as market expectations for Fed interest rate cuts diminished. A noticeable decline in debt levels was seen in the fourth quarter of 2024, with around 65% of the previous year’s global debt increase stemming from emerging markets. While total debt in advanced economies was estimated at $214.3 trillion last year, debt in emerging markets was recorded at $103.7 trillion. Looking at the distribution of debt, household debts reached $60.1 trillion by the end of 2024, non-financial corporate debts rose to $91.3 trillion, public debts surged to $95.3 trillion, and debts of financial companies such as banks climbed to $71.4 trillion. GLOBAL DEBT-TO-GDP RATIO RISES FOR THE FIRST TIME SINCE 2020 The global debt-to-GDP ratio surpassed 328%, rising over 1.5% by 2024. This marks the first yearly increase above 35% in the global debt-to-GDP ratio triggered by the pandemic since 2020. Although the continual debt increase played a significant role in the rising debt ratios last year, the slowdown in economic growth and inflation in 2024 contributed to the upward pressure on debt ratios. The rapid increase in debt ratios outside the financial sector was evident in Sweden, Nigeria, China, Israel, and Saudi Arabia, while Argentina, Turkey, the Netherlands, Greece, and Ireland witnessed sharp declines. While a further slowdown in global debt accumulation is expected, especially in the first half of 2025, heightened uncertainty in global economic policy and persistently high borrowing costs may hinder credit demand in the private sector due to a more cautious stance among debtors. Taking total GDP into account, household debts decreased from 60.7% to 60.3%, non-financial corporate debts dropped from 91.7% to 91.5%, while public debts rose from 96.3% to 98.5% by the end of last year’s fourth quarter. Debts of the financial sector continued at 77.7%. In Turkey, considering the ratio of debts to GDP, household debts decreased from 11.3% to 10%, non-financial corporate debts from 47.5% to 39.7%, public debts from 33.8% to 26.6%, and debts of financial companies like banks from 17.3% to 16.3% by the end of last year.