Global public debt is projected to reach $102 trillion in 2024, marking a $5 trillion increase from 2023, according to the International Monetary Fund’s (IMF) October 2024 World Economic Outlook.
BusinessDay reports that this sharp rise is attributed to ageing populations, escalating healthcare costs, and geopolitical tensions, which are expected to push defence spending higher in the coming years.
The United States and China remain significant contributors to the surge in global debt levels. As the world’s largest economy, the U.S. accounts for 34.6% of total government debt, with its fiscal pressures exacerbated by soaring interest payments.
In the 2024 fiscal year alone, net interest payments on U.S. debt reached $892 billion. Projections suggest these costs could rise to $1.7 trillion annually by 2034, with a cumulative net interest expense of $12.9 trillion over the next decade.
