B2 – Upper Intermediate
Total global debt reached an unprecedented $348 trillion by the end of 2025. This surge is mainly driven by heavy government borrowing in major economies like the U.S., China, and Europe.
Read the article to know why debt-to-GDP ratios slightly declined due to economic growth, high borrowing levels pose challenges for future fiscal stability.
Global Debt Surges as Governments Invest in National Security and Resilience
Vocabulary Questions:
- What does “deficit spending” mean? “Total global debt rose by nearly $29 trillion, reaching a new all-time high of $348 trillion, with roughly two-thirds of the increase originating in mature markets as deficit spending rose.” Use it in a sentence.
- What does “sovereign debt” mean? “Beyond the continued surge in China, the buildup in sovereign debt across emerging.” Use it in a sentence.
- What does “capital expenditure (CapEx) supercycle” mean? “A powerful new wave of global capital expenditure supercycles is set to reinforce this momentum, with large-scale investment in AI-driven data centers, energy security and transition, and resilient infrastructure emerging as a major growth engine for global debt markets.” Use it in a sentence.
Discussion Questions:
- Why do you think global debt has reached such a record-high level?
- How can high government debt affect ordinary people in everyday life?
- Do you think borrowing money is necessary for economic growth, or is it too risky? Why?
- Which countries do you think are most vulnerable to a global debt crisis?
- What strategies can governments use to reduce debt without harming their economy?