Global Public Debt to Surpass $100 Trillion for the First Time This Year, Warns IMF
According to the International Monetary Fund (IMF), the total global public debt is expected to exceed $100 trillion for the first time this year and may grow faster than anticipated, driven by a favorable political sentiment towards increased spending and slow growth amplifying borrowing needs and costs.
The IMF's latest "Fiscal Monitor" report indicates that global public debt is projected to reach 93% of global GDP by the end of 2024 and could approach 100% by 2030. This would surpass the peak of 99% reached during the COVID-19 pandemic and represent a 10-percentage-point increase compared to 2019, before the pandemic-driven surge in public spending.
The report suggests that future debt levels could far exceed current projections, partly due to the increased spending ambitions of the United States, the world's largest economy.
The IMF warns that uncertainty around budget policy has increased, and political resistance to fiscal reforms has hardened.
Meanwhile, spending pressures are intensifying due to green transitions, population aging, security concerns, and persistent development challenges.
