Global Debt
In short
Global debt is the total sum of money owed by governments, businesses, and households across the entire world. This figure continues to rise as economies borrow to fund spending and investments.
In plain words
It is the combined pile of all loans and unpaid bills globally. It counts what countries owe to each other, what companies borrow from banks, and what families owe on mortgages.
A simple example
If a government borrows money to build a new motorway, a company takes a loan to buy machinery, and a family takes a mortgage for a house, all these loans add to the global debt.
Why it matters
High debt levels can make the world economy unstable if borrowers cannot pay it back. It affects interest rates, inflation, and how much money governments can spend on public services.
Easy to mix up
Do not confuse global debt with global GDP, which is the total value of everything produced rather than what is owed.