The Rising Cost of Government Debt 💸

What We’re Showing

This graphic shows the net interest expense as a percentage of government revenue across major nations. Figures represent the average percentage for 2021 and 2023, in addition to the forecasted average for 2024 and 2026. Data is based on analysis from the Institute of International Finance (IIF).

Key Takeaways

• Interest on the U.S. national debt is one of the fastest rising expenses in the federal budget, surpassing both defense spending and Medicare in 2024
• Italy’s debt costs as a percentage of government revenue are more than double France, driven by high debt loads and weak productivity growth
• Two countries, Denmark and Norway, are forecast to see their governments' earnings from investments, such as foreign debt holdings, exceed their interest expenses due to their unique debt dynamics