G7 debt burdens surge as interest payments strain budgets in US, Japan and Europe

On January 27 2026, multiple advanced economies including the United States, Britain, France, Italy and Japan were reported to be carrying debt loads at or above the size of their annual GDP. The United States now faces about $38 trillion in national obligations with net interest costs near $1 trillion a year, while Japan’s debt exceeds twice its economic output amid new election-driven spending pledges. Rising borrowing costs, aging populations and infrastructure needs are squeezing government budgets and raising concerns over long-term financial stability.