how debt bubble could affect global markets: Global debt hits insane $338 trillion — the biggest bubble in human history?

Global debt has surged to a record-breaking $338 trillion, rising by $14 trillion in the second quarter of 2025, as per a social media X post by Global Markets Investor. The massive increase has intensified warnings from economists and world leaders that the world may be facing the biggest debt bubble in human history.

Global Debt Skyrockets to $338 Trillion, Emerging Markets Drive Record $109 Trillion Debt Surge

Emerging markets have been a key driver of this rise, with their total debt reaching a record $109 trillion, as per the Global Markets Investor report. Despite this, the global debt-to-GDP ratio fell slightly by one percentage point to 324%, while emerging markets’ debt-to-GDP ratio climbed to an all-time high of 242%, as per the Global Markets Investor report.

WEF President Warns of Crypto, AI, and Debt Bubbles

Amid these developments, World Economic Forum (WEF) President Børge Brende warned of three potential financial bubbles forming, in crypto, artificial intelligence (AI), and debt, as per a report by Arise. Speaking during his visit to São Paulo, Brazil, Brende cautioned that global debt levels are now the highest they’ve been since 194, as per the report.

Brende said, “We could possibly see bubbles moving forward. One is a crypto bubble, second an AI bubble, and the third would be a debt bubble,” quoted Arise.

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AI Productivity Gains Could Lead to Major Job Losses

He noted that while AI offers huge potential for productivity gains, it also poses major social and economic risks, as per the report. He warned that automation could lead to significant white-collar job losses, creating a “Rust Belt” effect in large cities dependent on office-based work, according to the Arise report. Recent layoffs at companies like Amazon and Nestlé, he added, highlight this growing challenge, as per the report.

Global Economy Shows Resilience Amid Geopolitical Disorder

Brende pointed out that, “There is definitely a geopolitical disorder … But even in the situation of geopolitical disorder, the global economy has been incredibly resilient – not necessarily in Europe but in India, China and the U.S.,” as quoted by Arise.

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Declining Global Investments Raise Economic Concerns

He also warned about the current US tariff policy, saying, “One of my worries is that global investments are going down. We need to re-establish an environment for investments,” adding, “The current competition between the U.S. and China, Brende said, was “basically a competition for hegemony or dominance in technology,” as quoted in the report.

FAQs

How much did global debt rise in Q2 2025?
Global debt increased by $14 trillion in the second quarter of 2025.

What is the total global debt now?
Global debt has reached a record $338 trillion, as per Global Markets Investor.