Global Trends in High Debt Levels and Their Macroeconomic Implications

In response to the unprecedented crisis triggered by the COVID-19 pandemic in 2020, governments and central banks around the world injected massive fiscal stimulus and liquidity support. These bold policy measures succeeded in averting the worst recession, but, as a consequence, the world is now facing historically high levels of debt. According to the Institute of International Finance, global debt surpassed USD 324 trillion in the first quarter of 2025—roughly three times the size of global GDP and “[a level unseen] since the Napoleonic Wars.” Moreover, global debt increased by USD 7.5 trillion during the same quarter, more than four times the quarterly average increase of USD 1.7 trillion since late 2022, indicating that the global debt problem has worsened rather than eased after the pandemic. Against this backdrop, Choi et al. (2025) reassessed the structure of the post-pandemic high-debt environment, analyzed vulnerabilities across advanced economies, emerging markets, and Korea, and derived policy implications for proactive responses. The purpose of this report is to present their key findings.