Global debt rose by $7 trillion and set a new record.

According to the Institute of International Finance, global debt increased by $7 trillion in 2024, reaching $318 trillion, which is a record and a cause for caution in financial markets.

For the first Time in four years, total debt as a share of gross domestic product grew due to slowed economic growth. Analysts forecast that borrowing will remain high this year, particularly in the USA, France, China, India, and Brazil.

'Increasing attention to fiscal balances - especially in countries with extremely polarized political landscapes - has been a defining feature in recent years,' the report states.

The increase in debt in 2024 was smaller than in the previous year, and the Institute of International Finance predicts slower growth in total borrowing this year due to uncertain prospects.

'We expect further slowing in the accumulation of global debt,' analysts said.

A more cautious position from borrowers is expected to reduce private sector demand for loans.