Global Public Debt Approaching Historic Threshold
The global public debt is nearing a historic milestone and could equal the size of the global economy sooner than expected.
According to the latest report from the International Monetary Fund (IMF) published on April 15, the global public debt is expected to reach the equivalent of 100% of global GDP by 2029, a year earlier than previously forecast. A similar level had only been observed after World War II. In a worst-case scenario, this debt could rise to 117% of global GDP, or even 121% if tensions persist in the Middle East. The IMF emphasizes that this geopolitical context is weighing on public finances, particularly through:
- Rising energy and food prices
- Tightening financial conditions
- Increased military spending
The IMF's report highlights the need for governments to carefully manage their debt levels to avoid exacerbating the situation and to ensure sustainable economic growth.
