The global economy is under pressure from increasing debt burden and rising financing costs. The Financial Monitoring Report published by the IMF yesterday revealed that public debt worldwide reached approximately 94 percent of gross domestic product in 2025 and could exceed 100 percent in 2029 if the current trend continues. According to the Global Debt Monitoring report of the Institute of International Finance (IIF) dated September 2026, global total debt, including the debts of the public sector, companies and households, exceeded 365 trillion dollars in the first half of 2026. This amount corresponds to approximately 305 percent of the annual economic production worldwide.
IMF: INCREASES BOND INTEREST RATES
The IMF’s Global Financial Stability Report, published on October 13, reported that world financial markets remain resilient to economic shocks, but systemic risks remain high.. Three main risks were highlighted in the report. Accordingly, if artificial intelligence investments fail to provide the expected return, a sharp decline in the valuations of technology companies, a rapid rise in government bond yields due to concerns about inflation and public finances, and cyber attacks targeting financial institutions raise concerns.
GLOBAL DEBT HAS MORE THAN DOUBLED IN 20 YEARS
The data also reveals the long-term dimension of the global debt problem. Total global debt, which was approximately $130 trillion in 2005, has increased to over $365 trillion in the first half of 2026. In the same period, the ratio of debt to world economic production increased from approximately 240 percent to 305 percent.. According to the report, the policies implemented after the global financial crisis, public expenditures during the COVID-19 epidemic, and the increasing need for financing for defense, energy security and infrastructure investments in recent years were effective in the increase in debt.
BORROWING COSTS ARE INCREASING
According to the report, the major economies of the USA and Europe are at the center of the global debt debate.. High public debt, budget deficits and increased new bond issuances are increasing the returns investors demand from long-term government bonds. European Commission Commissioner for Economy Valdis Dombrovskis said that there are currently no signs of a new public debt crisis in the euro area, but governments should attach importance to fiscal discipline due to increasing borrowing costs.
