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Global Debt Tops US$365 Trillion, Interest Now Costs More Than Defense

Astron Team · 09/24/2026 · 3 min read

Global debt grew by US$10 trillion in the first half of 2026 and now exceeds US$365 trillion, according to the Institute of International Finance (IIF). The increase comes just as borrowing has gotten more expensive, with government bond yields in the US, Japan, France, and the UK at their highest levels in more than a decade.

High interest rates, expensive energy, weak growth, and elevated public spending explain the move. Wealthy countries have started living with large deficits and growing interest bills, something previously associated with emerging economies.

The size of the bill is striking: last year, advanced economies spent more than US$3.3 trillion on debt interest alone. That's more than the world invested in artificial intelligence (about US$2.6 trillion), in defense (US$3.1 trillion), or in clean energy (US$2.3 trillion).

The OECD and the IMF are calling for tighter spending controls. For investors, the topic matters because high debt can push up interest rates and currency volatility, make corporate credit more expensive, and pressure stocks and other risk assets if the market starts doubting governments' ability to pay.

Source: Traders Union.