Government debt in 10 major advanced economies to rise by about $4 trillion (5,345 trillion won) ... total to top 100.734 quadrillion won

[Financial News] Government debt in the 10 major advanced economies is expected to increase by about $4 trillion (5,345.2 trillion won) this year as bond yields rise, bringing their combined government debt to more than $75.4 trillion (100.7344 quadrillion won) by year-end. 
International credit rating agency Fitch said this in its ‘Advanced Economies Debt Sustainability Report,’ released on the 14th (local time), noting that benchmark 10-year government bond yields in the world’s 10 major advanced economies have surged by an average of 81 bps this year (1 bp = 0.01 percentage point).
This is almost three times the $26 trillion (35 quadrillion won) debt recorded 20 years ago. The debt-to-GDP ratio has worsened from 68% three years ago to 102%.
Interest rate increases were particularly pronounced in countries with weak public finances. 
France recorded the steepest increase, at 135 bps. It was followed by Italy (108 bps), the United States (106 bps), Japan (94 bps) and the United Kingdom (94 bps).
Fitch said the rise in government bond yields has made it harder for major advanced economies such as France, the United States and the United Kingdom to keep their debt burdens stable. The median 10-year government bond yield in the 10 advanced economies is 161 bps higher than the average interest rate paid on existing debt, making it difficult to reduce or stabilize debt levels. 
With yields on newly issued government bonds now much higher than those on existing bonds, it is difficult to curb the growth in government debt even if budget deficits are reduced. 
Fitch noted that rising government bond yields are becoming a structural burden that constrains advanced economies’ fiscal room for maneuver, rather than simply reflecting fluctuations in financial markets. 
France’s fiscal burden stood out in particular. Fitch estimated that to stabilize its debt-to-GDP ratio at the current level, France would need to cut its primary fiscal deficit from 2.9% of GDP, forecast for this year, to 0.4%.
The primary fiscal balance is the government’s fiscal balance excluding interest payments on government bonds. France is running a substantial deficit even before interest costs, leaving it in need of major spending cuts or increased tax revenue. Fitch estimated that if the effective borrowing rate on existing government debt rose to current market rates, additional fiscal adjustment equivalent to about 3.1% of GDP would be needed.
Fitch expects the U.S. general government deficit to reach about $2.4 trillion this year, or 7.5% of GDP. It forecasts deficits of 5.4% of GDP for France, 4.8% for the United Kingdom and 3.7% for Germany.
The long-term outlook for government debt is also bleak. Fitch projected that France’s government debt-to-GDP ratio would rise by 12 percentage points to 128% by 2030—the largest increase among major advanced economies.
The government debt ratios of the United States and Germany are also projected to rise substantially, following France. Japan’s debt ratio, by contrast, is expected to fall by 11 percentage points to 185% over the same period.
Fitch identified the United States and Canada as the two North American countries; the United Kingdom, France, Germany, Italy, Spain and Switzerland as the six European countries; and Japan and Australia as the other members of its 10 major advanced economies.

[email protected] Lee Seok-woo, International Affairs Specialist Reporter