Global Public Debt Expected to Surpass $100tn

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Global Public Debt Expected to Surpass $100tn
Export earners have increased

Governments are urged to implement fiscal reforms, strengthen tax systems, and focus on growth-enhancing investments that promote sustainability.

In a striking revelation from the latest Fiscal Monitor report, the International Monetary Fund (IMF) projects that global public debt will exceed $100 trillion by the end of 2024.

This unprecedented level, equivalent to 93% of global GDP, marks a significant milestone in the rising debt burden across nations.

The IMF further warns that without decisive action, this figure could surpass 100% of GDP by 2030.

The report highlights the economic strains faced by countries worldwide as they grapple with the lingering effects of the COVID-19 pandemic, geopolitical conflicts, inflation, and global economic slowdowns.

Public debt soared during the pandemic due to massive government spending on health and economic stimulus measures, and it continues to grow despite ongoing global recovery efforts.

Developed economies, which deployed extensive fiscal stimulus packages, now face the challenge of reining in debt while maintaining growth and social stability.

In developing nations, the debt crisis has intensified due to limited fiscal space, increasing borrowing costs, and external shocks, such as rising food and energy prices.

The IMF stresses that delaying debt management efforts could have long-term implications for global economic stability.

Governments are urged to implement fiscal reforms, strengthen tax systems, and focus on growth-enhancing investments that promote sustainability.

The Fiscal Monitor emphasizes the need for global coordination in addressing debt vulnerabilities.

"Countries need to act now to get debt under control," the report urges, pointing to the risks of inaction amid heightened uncertainty and a challenging global financial environment.

IMF Managing Director Kristalina Georgieva has called for a balanced approach to fiscal policies that support economic growth while addressing the mounting debt crisis.

The Fund’s ongoing support for nations through policy advice, financial resources, and debt restructuring will be pivotal in stabilizing economies as they navigate these challenges.

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