Stay in view of the free updates

Simply subscribe to Global economy Myft Digest – it is delivered directly to your inbox.

The global government borrowing is expected to reach a record record of $ 12.3 million this year, as a rise in defense and other spending by major economies and high interest rates to raise debt levels.

3 percent in height The sovereign bond The version in 138 countries will take total debt shares – which were paid by the global financial crisis, the Corona virus’s pandemic and now the need to spend a larger European defensive – to a record of 76.9 grooves, according to S&P Global Ratings.

Roberto Sephon-Arvalo, the global sovereignty president at the S&P, said that focusing on the big economies on fiscal policy “dealing with the crisis after the continuation of the crisis, and the result is that you have a more religious sovereign image.”

He added that this has doubled this by increasing the costs of debt service, as bond revenues have increased significantly since the end of the bond purchase programs for central banks.

Sephon-Arifalo said that borrowing to finance higher spending “was fine and sustainable while you had borrowing costs that you had before the epidemic, and it is now a much larger problem.”

The exacerbation of public financial affairs is a growing concern among the large investors, with the Pimco giant warning in December that it had planned to reduce its exposure to American debt that has been long history due to “debt sustainability questions”. The billionaire investor has warned Ray Dalio that the United Kingdom had risked the entry of A. “Debt death” Where you need to borrow more and more in the process of selling bonds for self -realization.

in weThe S&P, who excludes its numbers, said that its numbers exclude its numbers, that the largest borrower in the world, “the broad financial deficit, high interest on benefits, and the requirements for re -financing of large debts”, will pay to $ 4.9 million, such as local government debts.

The agency expects that the financial deficit of the US government will remain higher than 6 percent of GDP by 2026, but it argues that the dollar is on the world’s realistic reserve currency will continue to bear a “great flexibility” in the United States in its public financial resources.

China, the second largest borrower, is expected to enhance its long -term release through the equivalent of more than $ 370 billion to 2.1 Train while spending greatly to try to revive its local economy. Outside the countries of the Seven and China Group, borrowing around the world is expected to remain widely flat.

In general, debt shares will reach 70.2 percent of Global GDP, according to the S&P. This has increased steadily since 2022, but it is less than 73.8 percent through 2020, when governments responded to the epidemic with huge spending programs.

S&P also highlighted a significant deterioration in credit quality since the global financial crisis of a number of major economies. The share of debt shares coming from borrowers has decreased with the highest AAA classification, as countries like the United States and the United Kingdom have decreased from the top of the slide.

The recent rise in government debt supply was to combine investor concerns about economic expectations to create “more severe returns and renewal investor concerns about weak financial positions in many advanced economies.”

Sifon-Arvalo said that there is an investor’s appetite to accommodate the issuance of debt, as the assets of bond boxes have grown. He added that the cost of serving the burdens of debt burdens will strike the aspirations of other governments, such as spending on infrastructure. This was feeding “changes in political colors” around the world.

“More conservatives grow financially [political] “The movements have no fact that you have seen this huge growth in the financial deficit and debt,” he said.