Global public debt reaches post-war high of 100% of GDP

Global public debt has reached nearly 100 percent of the world’s gross domestic product, marking its highest level since World War II, according to the International Monetary Fund (IMF). The IMF warns that debt levels are expected to rise further due to elevated borrowing costs and weakening economic growth.

Major advanced economies, including the United States, France, and Japan, are facing significant fiscal challenges. In the United States, public debt is approximately 125 percent of GDP, with interest payments consuming roughly 18 percent of the federal budget. France faces a debt-to-GDP ratio of about 117 percent, complicated by high deficits and weak growth.

Rising sovereign bond yields are increasing the interest burden on governments, which reduces available financing for the real economy. This trend affects emerging markets as well; even nations with strong central banks face higher financing costs because global benchmark rates have risen, offsetting previous policy improvements.