Fitch Ratings: Developed economies' sovereign debt to hit $75.4 trillion by 2026

Fitch Ratings reports that the combined sovereign debt of leading industrial economies is projected to reach approximately $75.4 trillion by the end of 2026. This figure represents roughly 102 percent of the group's collective gross domestic product (GDP).

In comparison, the total sovereign debt for these same economies was $26 trillion, or 68 percent of their combined GDP, twenty years ago. The analysis highlights a significant rise in bond yields across all developed economies and across the entire maturity spectrum, with ten-year yields reaching levels not seen in decades.

Among the ten largest advanced industrial economies—the United States, Japan, Germany, the United Kingdom, France, Italy, Spain, Switzerland, Canada, and Australia—ten-year sovereign bond yields have risen by an average of 81 basis points since the beginning of the year. The most substantial increases were observed in countries with weaker fiscal positions, specifically France (135 basis points), Italy (108 basis points), and the United States (106 basis points).