The key facts

  • US government debt — $41.4 trillion, roughly a third of the world’s government debt
  • US net interest payments in fiscal 2026 — $1.1 trillion, $225 billion more than defense spending
  • China’s debt ($22.5 trillion) will exceed 100% of GDP for the first time; in 20 countries debt will top 100% of GDP

Debt burden of the largest economies

Government borrowing has reached historically high levels, and debt servicing costs are putting ever greater pressure on budgets. These figures are cited by the Kun.uz portal, referring to the October edition of the IMF report “World Economic Outlook,” which accounts for gross general government debt covering the liabilities of all levels of government. Forecasts for countries’ government debt in 2026 are presented, in particular, in the IMF’s general government debt database.

United States: a third of the world’s debt, and interest costs exceed defense spending

The United States ranks first with a government debt of $41.4 trillion — roughly a third of the world’s total government debt. Over the past ten years, the debt-to-GDP ratio has grown from 107.5% in 2016 to a projected 126.8% in 2026: borrowing has outpaced economic growth. In fiscal year 2026, net interest payments by the federal government will reach $1.1 trillion — $225 billion more than defense spending.

China: debt to exceed 100% of GDP for the first time

China ranks second with a debt of $22.5 trillion, which, according to the forecast, will exceed 100% of GDP for the first time in 2026. Unlike the United States, one of the main sources of its budget problems is the system of financing local governments: regional administrations have borrowed for years to fund infrastructure and territorial development, relying on revenue from land sales. The downturn in the real estate market has undermined this model of replenishing budgets and increased pressure on public finances.

Debt size is not the same as debt burden

The authors of the article emphasize: the largest debt volume does not mean the greatest debt burden. If debt is assessed relative to the size of the economy, then, according to forecasts, government debt will exceed 100% of GDP in 20 countries in 2026 — among them both large industrialized nations and small developing economies. Thus, with essentially the same problem of growing borrowing, the picture changes noticeably depending on whether debt is compared in absolute figures or relative to GDP.