Global public debt rose by $10 trillion in the first half of 2026, pushing the total above $365 trillion, CNBC reported, citing data from the Institute of International Finance (IIF).
IIF analysts warn that governments have been caught in a “vicious circle.” Large budget deficits are forcing them to borrow more, while rising interest payments are making existing debt increasingly expensive to carry.
According to the institute, advanced economies spent more than $3.3 trillion last year servicing debt issued through international bonds. That sum exceeded global investment in artificial intelligence, defence and clean energy.
CNBC said the United States, Japan, France and the United Kingdom are now facing strains that were previously seen mainly in emerging markets. The shift comes as sovereign bond yields have climbed to their highest levels in a decade.
IMF Managing Director Kristalina Georgieva stressed the importance of lowering debt levels and making fiscal consolidation a priority. The Organisation for Economic Co-operation and Development has also argued for restraining and reallocating government spending to improve the world economy’s long-term resilience to future shocks.
On August 31, reports also showed that global debt-servicing costs on public borrowing have climbed 50% over the past four years. Advanced economies are using as much as 80% of new borrowing to refinance existing obligations, while borrowing costs have risen more than threefold over five years.
Russia’s finance minister also said the problem of massive public debt is worsening and threatens irreversible consequences.
