Tuesday, October 15, 2024
Year : 2, Issue: 7
The world’s total public debt is set to exceed $100 trillion this year for the first time, and may grow more quickly than forecast as political sentiment favors higher spending and slow growth amplifies borrowing needs and costs, the International Monetary Fund said on Tuesday.
The IMF’s latest Fiscal Monitor report showed global public debt will reach 93% of global gross domestic product by the end of 2024 and approach 100% by 2030. That would exceed its 99% peak during COVID-19. It would also be up 10 percentage points from 2019, before the pandemic exploded government spending.
Released a week before the IMF and World Bank hold annual meetings in Washington, the Fiscal Monitor said there are good reasons to believe future debt levels could be well higher than currently projected, including a desire to spend more in the US, the world’s largest economy.
“Fiscal policy uncertainty has increased, and political red lines on taxation have become more entrenched,” the IMF said in the report. “Spending pressures to address green transitions, population aging, security concerns, and long-standing development challenges are mounting.”
Source: Reuters
