Global debt has been a hot topic for years, and for good reason. The numbers are staggering: according to the International Monetary Fund (IMF), global debt reached a record $235 trillion in 2022, which is 238% of global GDP . While this is actually a slight decrease from the peak during the pandemic, it's still significantly higher than pre-pandemic levels. What's Driving the Debt Surge? There are several factors contributing to the rise in global debt: The Global Financial Crisis (GFC) : The GFC of 2008 led governments around the world to take on massive debt to stimulate their economies. Low-Interest Rates: Central banks around the world kept interest rates low for an extended period after the GFC, which encouraged borrowing by governments, businesses, and households. The COVID-19 Pandemic: Governments again increased spending to mitigate the economic effects of the pandemic, leading to further debt accumulation. Is This Debt Sustainable? That's the million-dollar ques