Fiscal Monitor, April 2026: Fiscal Policy under Pressure: High Debt, Rising Risks

Driven largely by major economies, global public debt is projected to reach 100 percent of GDP by 2029, straining public finances amid rising interest burdens, mounting spending pressures, and the compounding fiscal fragilities of the Middle East conflict.
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Volume/Issue: Volume 2026 Issue 001
Publication date: April 2026
ISBN: 9798229042550
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Finance , Inflation , Economics- Macroeconomics , Public Finance , public debt , fiscal deficit , sovereign debt markets , Middle East conflict , fiscal consolidation , Emerging and frontier financial markets , Fiscal risks , Financial sector stability , Global

Summary

Global public debt rose to just under 94 percent of GDP in 2025 and is set to reach 100 percent by 2029, one year earlier than projected in April 2025. This accumulation is driven largely by the world's major economies. Public finances are under strain from mounting spending pressures—on social needs, defense, and strategic autonomy—and rising interest burdens. The fiscal consequences of the Middle East conflict add further to these fragilities. Structural shifts in sovereign debt markets-including the growing role of leveraged nonbank intermediaries and erosion of the U.S. Treasury's safety premium-are amplifying vulnerability to repricing. Credible, well-sequenced fiscal adjustment is urgently needed across all country groups.