"Fitch: Advanced economies' debt to reach $75.8 trillion by end of 2026"

Arabic - Government debt in advanced economies is projected to reach a record $75.8 trillion by the end of 2026, an increase of $4.2 trillion over one year, equating to 104% of GDP.

Fitch Ratings noted that the United States leads advanced economies in terms of the projected budget deficit this year at 7.8% of GDP, while governments continue to face mounting spending pressures due to defense, aging populations, climate change adaptation, and rising interest costs.

Fitch expects the US debt-to-GDP ratio to rise to 131.5% by 2030, up from around 120% in 2026, while Japan will remain the country with the highest debt ratio among major economies at approximately 192%.

The Bank for International Settlements had previously called on governments worldwide to curb the "persistent" rise in public debt, noting that higher interest rates are making the fiscal trajectories of some countries unsustainable.

It noted that large budget deficits and high debt levels appeared sustainable when interest rates were low following the global financial crisis, allowing financial authorities to avoid making difficult decisions such as cutting spending or raising taxes.