Global government borrowing is expected to reach a record $12.3tn this year, as a rise in defence and other spending by major economies and higher interest rates combine to push up debt levels. <\/p>\n\n\n\n
The 3 per cent rise in sovereign bond issuance across 138 countries would take the total debt stock \u2014 which has been pushed higher by the global financial crisis, coronavirus pandemic and now the need for greater European defence spending \u2014 to a record $76.9tn, according to estimates by S&P Global Ratings. <\/p>\n\n\n\n
Big economies\u2019 focus on fiscal policy to \u201cdeal with crisis after crisis continues, and the outcome is you do have a much more indebted sovereign picture\u201d, said Roberto Sifon-Arevalo, global head of sovereigns at S&P. This had been compounded, he added, by a rise in debt-servicing costs, as bond yields have moved substantially higher since the end of central banks\u2019 bond-buying programmes. <\/p>\n\n\n\n
Borrowing to fund higher spending \u201cwas fine and sustainable while you had the borrowing costs that you had before the pandemic, now it presents a much bigger problem\u201d, Sifon-Arevalo said.<\/p>\n\n\n\n
Read it all<\/a>.<\/p> Also from the @FT<\/a>:
\u201cGlobal government borrowing is expected to reach a record $12.3tn this year, as a rise in defence and other spending by major economies and higher interest rates combine to push up debt levels.
The 3 per cent rise in sovereign bond issuance across 138\u2026 pic.twitter.com\/y5ctXg3EcB<\/a><\/p>— Mohamed A. El-Erian (@elerianm) March 4, 2025<\/a><\/blockquote>