Global debt levels are projected to rise to a record $348 trillion by the end of 2025.

Odaily Planet Daily reports that the International Institute of Finance (IIF) released a report on Wednesday showing that global debt levels are projected to reach a record $348 trillion by the end of 2025. Of this, nearly $29 trillion was added in just the past year, marking the fastest annual growth since the early days of the pandemic. Data indicates that the current global debt cycle is no longer primarily driven by households or corporations but is mainly fueled by persistent fiscal deficits in major economies.

In its latest “Global Debt Monitoring” report, the International Institute of Finance states that this growth is mainly driven by governments, with government debt accounting for over $10 trillion of last year’s increase.

The report notes that by 2025, global debt as a percentage of GDP will slightly decrease to about 308%, mainly driven by developed economies. Meanwhile, debt in emerging markets continues to rise, reaching a historic high of over 235% of GDP.