Global debt levels rise amid structural economic pressures

Global financial leaders are warning of rising public debt and mounting fiscal pressures. The International Monetary Fund (IMF) reported that worldwide public debt, currently at approximately 100 percent of global GDP, has exceeded post-World War II levels and is projected to continue climbing.

IMF Managing Director Kristalina Georgieva noted that while global growth remains relatively firm, significant economic divergences exist. She highlighted risks such as ongoing energy shocks, rising energy demand driven by Artificial Intelligence, and a stalling disinflation process in several countries.

Complementing these concerns, Bank of England Governor Andrew Bailey identified structural challenges that could drive up government debt and borrowing costs in advanced economies. Bailey cited weak productivity, ageing populations, and increased demands for defence spending as primary drivers of these pressures. He noted that these factors contribute to rising bond yields, with Britain’s 10-year borrowing costs recently reaching their highest levels in nearly two decades.