World’s Most Indebted Superpower? US Debt Set To Look Worse Than Italy, Greece; IMF Says Countdown Has Already Begun | World News

Washington: The United States is heading into a financial crisis not seen in the last 100 years. The country’s debt burden continues to reach record levels. It has already exceeded 38 trillion dollars in 2025. The International Monetary Fund (IMF) has warned that America is now moving into a position that once triggered global concern for other advanced economies.

According to IMF forecasts, the US’s general government gross debt will reach 143.4% of GDP in 2035, up from 123% in 2024. This level would exceed Italy’s 137% and Greece’s 130%, long seen as symbols of high public debt.

Economists say this shift will likely bring a major shift in the global financial balance.

The United States is spending more money every year while income growth remains weak. Federal interest costs are rising faster than other parts of the budget. Interest payments currently exceed the government’s transportation and education spending combined.

Analysts estimate that every 1 percent increase in average interest rates adds about $380 billion to the nation’s annual borrowing bill.

The IMF expects U.S. budget deficits to remain above 7% of GDP each year through 2035. No other major economy faces such prolonged deep deficits. The increase is due to expensive tax policies, ballooning retirement and healthcare liabilities, expanding defense budgets and rising borrowing costs due to interest rate hikes by the Federal Reserve.

In Europe, Italy and Greece are gradually stabilizing their finances after years of painful reforms. Italy’s debt burden is expected to remain around 137%. Greece’s debt is projected to fall to 130.2% by 2030. The IMF says the United States is moving in the opposite direction and developing deeper imbalances even as its economic growth slows.

Experts warn that America’s debt path could limit Washington’s response to future recessions, climate disasters or wars. High debt reduces financial flexibility. As interest costs consume more of the federal budget, they divert funds away from infrastructure, education and national security.

More than 80 percent of the U.S. government’s debt will come due within the next decade. Constant debt rollovers add to the pressure as markets demand higher yields for long-term Treasuries. The Congressional Budget Office estimates that interest payments could reach nearly $1.8 trillion annually by 2035.

The United States still benefits from the global dominance of the dollar and the strength of its financial markets. But the IMF warns that these advantages cannot be assumed forever. Reliability depends on responsible financial management.

The national debt continues to climb, increasing by $2.18 trillion last year alone. The IMF describes the current course of the world’s largest economy as “uncharted territory.” Fiscal experts say meaningful action requires spending reforms, smarter taxation and long-term growth planning.

America’s debt crisis is no longer a distant prediction. It’s showing up now. The moment when US debt surpasses that of Italy and Greece will be a symbolic turning point. And if Washington fails to change course soon, this turning point could mark the beginning of a much more dangerous era for the US economy.