Uneven Household Debt, Uneven Trends

Financial Soundness Indicators, Country data, Quarterly

Contributors: Hector Carcel Villanova, Abdulrahman Gweder, Mahmut Kutlukaya, Miguel Segoviano, Ibrahim Serwanja

Across countries, household indebtedness differs markedly, as highlighted by the financial soundness indicators (FSI) dataset, implying differing vulnerability to economic and financial shocks. Household debt-to-GDP ratios show persistent and large gaps between advanced economies (AEs) and emerging market and developing economies (EMDEs), as highlighted in figure 1 below. AEs exhibit structurally higher household indebtedness, while levels are lower in EMDEs.

In both AEs and EMDEs, household debt levels exhibit significant movements, linked to major global shocks—although at times with cross-countries differences. In AEs, household debt ratios rose sharply around the Global Financial Crisis (GFC), declined gradually during the deleveraging phase of the early 2010s, and increased again during the COVID-19 pandemic amid more accommodative financial conditions and forbearance and lower economic growth, before moderating from 2022 as interest rates rose. In EMDEs, household debt ratios increased more moderately in the run up to and after the GFC but showed a significant increase in the post-pandemic period.

Evidence from a small sample of countries shows a rising trend in the household debt service burden—as measured by debt service-to-income ratio (Figure 2)—after 2021, as borrowing costs increased in response to higher interest rates.

Household FSI data provide valuable insights into household indebtedness and vulnerability to and potential amplification of economic and financial shocks—such as elevated interest rates or inflation, asset price corrections, and income shocks. This highlights the need to enhance surveillance of household financial soundness, supported by improved FSI data coverage and timeliness, to effectively inform macro financial policy.

Notes: Advanced Economies: Australia, Austria, Belgium, Canada, Croatia, Denmark, France, Germany, Greece, Ireland, Israel, Italy, Korea Rep., Lithuania, Luxembourg, Malta, Norway, Portugal, Spain, Sweden, United Kingdom, and United States. 

Emerging Market and Developing Economies: Albania, Armenia, Belarus, Bhutan, Brazil, Burundi, Cambodia, Georgia, Indonesia, Kazakhstan, Kenya, Kyrgyz Republic, Maldives, Mauritius, Mexico, Nepal, North Macedonia, Poland, Romania, Russian Federation, South Africa, Tanzania, Thailand, Türkiye, and Uruguay.

Data for 2025 is for 2025Q4 or latest available in 2025. The sample is driven by data availability.

Advanced Economies: Australia, France, Germany, Italy, Norway, Portugal, Sweden, and United States.

Emerging Market and Developing Economies: Belarus, Kazakhstan, and North Macedonia.

Note: Sample is driven by data availability. The numerator and denominator of the indicator are calculated by aggregating the U.S. dollar–equivalent values for all countries included in the groups.

EXPLORE THIS DATASET

EMPOWERING THE WORLD WITH DATA

IMF Data is known for its high standard of quality and methodological consistency. With over 50 datasets updated regularly, you always have access to the latest global economic trends and forecasts as well as trusted data for cross country research and analysis. 

Check our release calendar for upcoming releases: 

Release Calendar