government debt

The quick read

What's driving the attention

Government debt levels are reaching record highs globally and in Canada, with foreign investment affecting borrowing costs.

Government debt is increasing sharply around the world, with developed economies projected to hit historic levels by 2026. In Canada, foreign investors are buying record amounts of government debt, which helps reduce borrowing costs, but experts warn about long-term fiscal sustainability. Similar challenges are seen elsewhere, such as in Russia where debt selloffs complicate budget financing, underscoring concerns about mounting public debt burdens internationally.