Fitch sees developed-market debt above $75tr

Express Tribune reported that Fitch expects developed-market government debt to rise above $75 trillion as benchmark yields climb. According to the rating agency, the average increase in 10-year yields across the 10 largest developed economies reached 81 basis points this year. That move could add close to $4 trillion to overall debt, with the top 10 economies accounting for $68.5 trillion.

The IMF, in its latest World Economic Outlook released in Bangkok, projects global growth of 3.1% for 2026, slightly above the 3.0% estimate from July. It flagged risks from a possible end to the AI investment boom, rising debt levels and a drawn-out war in the Middle East. In a downside case, a sharp pullback in AI spending could knock 1.1% off global GDP by 2028, with US output down 1.8%.

Nigerian Finance Minister Taiwo Oyedele, who chairs the Group of 24 developing nations, described debt vulnerabilities in many developing economies as a serious obstacle to inclusive growth. He said estimates pointed to developing nations paying $500 billion more on their debt than developed ones, despite growing deficits. Josh Lipsky of the Atlantic Council argued that France, Germany and the US must tighten their finances, yet are moving the other way.