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IMF Warns of Rising Global Debt, Urges Fiscal Tightening Amid Economic Uncertainty
IMF Warns of Rising Global Debt, Urges Fiscal Tightening Amid Economic Uncertainty
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BTCCSquare news:
The International Monetary Fund projects global public debt could surpass 100% of GDP by 2029—exceeding post-World War II levels—as governments grapple with slow growth, higher interest rates, and mounting financial pressures. Fiscal Affairs Director Victor Gaspar emphasized the need for immediate policy adjustments to avoid potential market turbulence.
Defense spending, demographic shifts, and climate adaptation costs are accelerating debt accumulation. Under adverse scenarios, debt-to-GDP ratios may hit 123% this decade. "The environment has changed dramatically," Gaspar noted, citing strained financial asset valuations and destabilizing feedback loops between fiscal policy and markets.
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