![]() ![]() World government debt is now projected to rise to 99.5% of GDP by 2027. While this ratio has fallen amid an economic rebound and high inflation in 20, it is projected to regain ground and continue climbing. ![]() Growing Global Debt ProjectionsĪfter rising steadily for years, government debt first ballooned to almost 100% of GDP in 2020. Over the next five years, it is projected to jump even further-raising concerns about government leverage in a high interest rate and slower growth environment.Īs global debt continues to climb, this animated graphic shows data and projections for public debt-to-GDP ratios using the World Economic Outlook ( April 2023 update) from the IMF. Total global debt stands at nearly $305 trillion as of the first quarter of 2023. During economic crises, these deficits can become incredibly large. That’s because the federal government runs consistent budget deficits, meaning it spends more than it earns. continuously pays off portions of its debt, the total amount it owes has increased each year since 2001. What’s Preventing the Debt From Shrinking?Īlthough the U.S. Furthermore, this is not the first time America has found itself in this situation-by the end of World War II, debt-to-GDP peaked at 106% before declining to historic lows in the 1970s. The most noteworthy is Japan, where the debt-to-GDP ratio has climbed beyond 200%. This may sound troubling at first, but there are a few caveats.įor starters, there are many other advanced economies that have also surpassed the 100% debt-to-GDP milestone. In April 2020, with the COVID-19 pandemic in full force, it reached a record 122% of GDP. Since then, America’s debt has only increased in relative size. This took a drastic turn during the Global Financial Crisis, with debt climbing to 95% of GDP by 2012. debt was relatively moderate between 1994 to 2007, averaging 60% of GDP over the timeframe. ![]()
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