Record Debt in the World’s Richest Nations Threatens Global Growth

New York Times - WorldCenter-LeftEN 6 min read 100% complete by Patricia CohenJanuary 27, 2026 at 06:01 AM

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long article 6 min

A new report from January 2026 indicates that record-high debt levels in the United States, Britain, France, Italy, and Japan are posing a significant threat to global economic growth and stability. These countries' increasing debt burdens are diverting funds from essential public services like healthcare and infrastructure, while also driving up borrowing costs for businesses and consumers. The rising debt, even during periods of economic stability, limits governments' ability to respond effectively to future crises such as financial downturns, pandemics, or climate-related disasters. Finance ministers at the World Economic Forum expressed concerns about funding essential needs like military upgrades and infrastructure improvements. The U.S. national debt, for example, has reached $38 trillion, approximately 125% of the country's economy.

Key Entities & Roles

Key Player Opposition Context

Harvard University 40% Davos 40% Donald Trump 50% World Economic Forum 50% Patricia Cohen ×260% Kenneth Rogoff 60% Japan 70% Italy 70% France 70% Britain 70% United States ×480%

Keywords

record debt 100% global growth 80% borrowing costs 70% financial instability 60% public spending 60% national debt 50% interest rates 50% economic crisis 50% global economy 40%