Global debt levels rise amid social spending and inflation

Public debt levels are rising significantly across several Western economies, raising concerns regarding credit ratings and fiscal stability. In Mexico, the expansion of social programs under the ‘Cuarta Transformación’ movement has coincided with a substantial increase in public debt. Data from the Secretaría de Hacienda y Crédito Público indicates that the country's total debt rose from approximately 10.3 trillion pesos in June 2018 to 19.4 trillion pesos by June 2026, representing a nominal growth of nearly 84 percent.

On a broader scale, Western economies are facing a debt surge that is impacting fixed-income markets. Rising yields in US Treasury bonds have triggered repercussions in European nations, including Greece, Italy, France, and Spain. In Germany, bond yields have exceeded 3.5 percent, while Spanish bonds have surpassed 4 percent, signaling that governments may need to allocate increasing resources toward interest payments. This fiscal pressure is compounded by inflationary trends and geopolitical tensions affecting energy prices.