Global public debt will exceed US$100 trillion by the end of this year unless major economies step up to stabilise borrowing, according to the International Monetary Fund (IMF).
The surge in government debt, driven largely by increased spending during the COVID-19 pandemic, continues to climb, with the US and China leading the way.
In its Fiscal Monitor, the IMF warns that without significant fiscal adjustments, global debt could approach 100% of gross domestic product (GDP) by the end of the decade, with countries like the UK, Brazil and South Africa also expected to see ongoing debt increases.
This news comes at the same time as the IMF highlights growing economic uncertainty. Risks from inflation, geopolitical tensions and climate disasters could raise chances of financial market volatility and slower global growth, the fund writes in a blog related to its Global Financial Stability Report.
“Our forecasts point to an unforgiving combination of low growth and high debt – a difficult future,” said Kristalina Georgieva, the IMF’s managing director, ahead of its annual meeting next week with the World Bank in Washington DC.
