IMF: Global Public Debt To Exceed 100 Pct Of GDP By 2029, Highest Since 1948
WASHINGTON, Oct 15 (Bernama-Sputnik/RIA Novosti) -- The global public debt will exceed 100 per cent of GDP by 2029 and reach a historic high level in almost 80 years, the International Monetary Fund (IMF) said on Wednesday, reported Sputnik/RIA Novosti.
“Global public debt is projected to rise above 100 per cent of GDP by 2029. In such a scenario, public debt would be at its highest level since 1948,” the IMF said in its new Fiscal Monitor report.
There is a 5 per cent risk that the debt would reach 123 per cent in the next four years, it added.
The IMF pointed out that this outlook has worsened since the pandemic. The fund also warned of the wide distribution of risks, which could lead to even faster debt accumulation, according to the report.
“Beyond the present, fiscal risks loom large. Public debt dynamics have drastically changed in recent years. It is not only the size of debt but also the cost,” the IMF said.
Public debt is high and rising, and increasing defence spending, aging populations, and higher interest rates put additional pressure on public finances, it added.
It said the United States’ government gross debt would reach 140 per cent of GDP in 2029 and would add another almost 3 per cent a year later.
In 2029, the US’ debt will be 140.1per cent of GDP, and this level will increase to 143.4 per cent in 2030, according to the report.
The IMF expects that in 2025, the US debt will be 125 per cent and will continue to grow in the coming years.
In mid-October, the US public debt exceeded US$37 trillion, according to media reports.
Russia’s government gross debt will exceed 32 per cent of GDP in the next five years, according to the report.
In 2030, Russia’s debt will be 32.8 per cent of GDP.
The IMF expects Russia’s debt to be 23.1 per cent of GDP in 2025, almost 3 per cent higher than a year earlier, according to the report. This level would gradually increase in the upcoming years.
--BERNAMA-SPUTNIK/RIA NOVOSTI
