Global Debt Contagion: A Looming Economic Shadow
In an era of unprecedented economic interconnectedness, the concept of "global debt contagion" has emerged as a critical concern for policymakers, economists, and investors alike. Global debt contagion refers to the phenomenon where high levels of debt in one country or sector spill over to others, potentially triggering widespread financial instability, defaults, or economic slowdowns. This contagion can manifest through trade linkages, financial markets, or shared vulnerabilities in global supply chains. As of early 2026, global debt—encompassing public, private, and household obligations—has surpassed staggering thresholds, prompting intensified discussions worldwide. The increasing discussions on global debt stem from a confluence of factors that have elevated it from a niche economic topic to a mainstream alarm bell. As of late 2025 and into 2026, global public debt has exceeded $100 trillion, approaching or surpassing 100% of global GDP by the end of the decade—a level ...