Global Debt Reaches $365.5 Trillion and Takes Center Stage at IMF
While the global debt burden reaches a record high, rising energy prices and inflation pressures are being addressed at the IMF and World Bank meetings.
Global debt increased by $10 trillion in the first half of 2026 to rise to $365.5 trillion. Rising bond yields and surging energy prices indicate that governments may face difficulties in servicing their debts in the future.
Increase in Global Debt
Global debt recorded an increase of $10 trillion in the first half of 2026, reaching a total of $365.5 trillion. Continuously rising global risks and the increase in bond yields indicate that they could exert pressure on governments' debt-servicing capacities in the coming period.
According to IMF data, public debts have risen to their highest level since World War II. The ratio of global public debt to national income is expected to reach 100 percent before 2030.
Rise in Bond Yields
Rising inflation expectations lie behind the rapid increases in bond yields. Investors expecting inflation rates to rise are selling their bonds, and due to supply-demand dynamics, bond prices are falling while yields are rising.
US 10-year Treasury yields hit their highest levels since 2002 on Thursday before settling around 5.26 percent on Friday. The fact that governments are issuing more bonds to pay off their increasing debts is also supporting the yields.
IMF and World Bank Meetings
The annual meetings of the International Monetary Fund and the World Bank are being held between October 12 and October 18. The meetings are addressing the global debt burden, high inflation, and energy prices.
IMF Managing Director Kristalina Georgieva's "Winter is coming" warning points to the pressure of rising energy prices on costs and high inflation.
Energy Prices and Risks
While risks in the Middle East cause energy prices to continuously increase, inflation risks remain hot. World Bank President Ajay Banga stated that the closure of the Strait of Hormuz disrupted approximately 20 percent of the oil supply.
Rising diesel and fertilizer prices continue to increase production costs. In developing countries, rising interest rates make it harder to roll over public debts.