Global Public Debt is High and Rising

Global public debt is high, and rising. It exceeded $100 trillion in 2024 and is expected to approach 100 percent of global GDP by decade's end. The final figure may well be even higher because of large spending pressures and a chronic underestimation of debt projections.

- S C Dhall

Global public debt is rising, requiring urgent fiscal adjustments to ensure sustainability and resilience amid economic uncertainties and spending pressures.

The global fiscal situation deteriorated in 2024, but with significant differences across countries. The global fiscal deficit reached an average of 5.1 percent of GDP, whereas public debt rose by 1 percentage point to 92.3 percent of GDP. This reflects the continuing legacies of high spending from the COVID-19 pandemic, and rising net interest expenses.

Geopolitical risk, trade policy, and world uncertainty indices Debt servicing costs are currently squeezing the space available to finance muchneeded investment or critical spending for development, while a shortfall in foreign aid poses an additional risk for low-income countries.

Although about two-thirds of countries anticipate stabilizing or reducing their debt by 2029, levels will remain elevated compared with pre-pandemic figures.