Our Voice And Yours

Our Voice And Yours

Lokvani Team
09/20/2026

How Government Interest Costs Compare

Key Takeaways

Mexico has the OECD’s highest interest burden, with 10.9% of government spending going toward net interest, narrowly ahead of the U.S. at 10.6%.
Italy’s 7.1% interest burden is roughly five times Germany’s 1.4%, despite both being major euro-area economies.
Four countries devote less than 1% of government spending to net interest: the Netherlands, Lithuania, Finland, and Estonia.

The U.S. government’s annual net interest bill now exceeds $1.2 trillion, larger than the annual economic output of most countries around the world.

But the U.S. isn’t alone in facing a sizable interest burden. Across the OECD, the share of government spending absorbed by interest varies dramatically, showing how differently debt and borrowing costs are affecting national budgets.

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