International Monetary Fund Communications Director Julie Kozack told reporters at an official IMF press briefing in Washington, D.C., that global public debt has risen to nearly 100% of world GDP — the highest level recorded since the end of World War II.
What the IMF said
Kozack attributed the surge to a combination of elevated sovereign borrowing costs and weaker economic growth across both advanced and emerging economies. The IMF's September 2026 press briefing transcript specifically highlighted that 10-year sovereign yields in the United States, France, and Japan have reached their highest points in several years — a trend that is spilling over into emerging and developing economies through higher benchmark rates and wider financing spreads.
The fund stopped short of calling for immediate fiscal consolidation, but urged governments to outline clear, credible plans for reducing deficits and debt, emphasising that policymakers must remain nimble as global growth runs well below the pace of previous decades.
Background
Global debt-to-GDP ratios were last at comparable levels in the late 1940s, driven by wartime spending. The post-war decades saw a sustained period of debt reduction as economies expanded. The return to those historical levels has been driven partly by pandemic-era stimulus measures whose effects have not fully unwound, and partly by structural spending commitments in aging economies.
Why it matters
Debt levels near a post-war peak constrain governments' fiscal flexibility and raise financing costs for both advanced and emerging economies. Higher sovereign yields increase the interest burden on existing debt, potentially crowding out spending on healthcare, infrastructure, and social programmes. For emerging markets, the spillover of rising US and European yields means wider borrowing spreads at a time when many are still managing post-pandemic recovery challenges.
