The ratio of US public debt to national income reached 100% for the first time after World War II

The public debt of the USA has reached critical levels after many years of increase. The ratio of public debt to national income in the country rose to 100 percent again for the first time after the Second World War.

The ratio of public debt to gross domestic product (GDP) in the USA rose above 100 percent after the Second World War, and fell to historical lows in the 1970s. The debt ratio started to trend upward again in the following years, approaching the 100 percent mark in the 2020s.

ONE OF THE HIGHEST LEVELS AFTER THE SECOND WORLD WAR

The ratio of US public debt to GDP, which was around 40 percent in the early 1940s, reached historical peaks, reaching over 100 percent in the 1945-1946 period due to the effect of increased public expenditures during the Second World War.

After the war, the debt ratio gradually declined, thanks to strong economic growth and fiscal discipline. The rate dropped to less than 25 percent in the mid-1970s.

2008 CRISIS AND PANDEMIC INCREASED DEBT

The ratio of US public debt to national income remained mainly in the 30-40 percent band until the 2008 global financial crisis.

Incentive packages implemented after the financial crisis accelerated the increase in public debt. The Covid-19 pandemic and expansionary fiscal policies that started in 2020 brought the debt rate close to 100 percent again.

While the debt ratio maintained its high course in the following years, it continued to remain at levels close to 100 percent as of the first quarter of 2026.

PRESSURE FOR GLOBAL FINANCE MARKETS

The rise in US public debt is viewed as an important risk factor for global capital markets and US Treasury bond yields.

High budget deficits and increases in long-term bond yields are increasing the US government's borrowing and debt service costs.

This situation is also among the main developments that may cause risk premiums and volatility to remain high in global markets.

EYES ON THE DEBT AND FISCAL POLICY OF THE USA

Markets closely follow the sustainability of the US fiscal policy, the course of budget deficits and the debates on the debt ceiling.

The fact that the US public debt to national income ratio has reached 100 percent increases the importance of the fiscal policies that the country will follow in the future for global markets.