IMF warns global public debt could reach $100 trillion by year's end

Posted on October 15, 2024   |  

The IMF predicts global public debt will reach $100 trillion by year-end, about 93% of the world’s GDP.

By 2030, global public debt could rise to nearly 100% of GDP, indicating a worsening trend.

Countries like Brazil, France, Italy, South Africa, and the UK are also expected to see their debt increase.

In a severe economic crisis, debt levels might jump to 115% of GDP within three years.

Advanced economies have stabilized their debt at around 134% of GDP after a rise during the pandemic, while emerging markets' debt is climbing to 88% of GDP.

Despite slowing inflation and falling interest rates providing some relief, governments are slow to tackle their fiscal issues.

The US's higher interest rates and a stronger dollar make it harder for many countries to repay loans by raising the cost of dollar-denominated goods.