Global debt has reached a record level, and the IMF has urged governments to urgently reduce deficits
Kyiv • UNN
Global government debt has reached a record high and will exceed 100% of global GDP by 2029. The IMF has urged governments to reduce deficits.
Global public debt has reached a record level, yet governments are doing too little to reduce budget deficits. IMF Managing Director Kristalina Georgieva said this at the Qatar Economic Forum in New York, Bloomberg reports, writes UNN.
Details
According to the IMF forecast, global public debt will exceed 100% of global GDP as early as 2029 — two years earlier than previously forecast. The United States and China remain among the main factors driving the increase in debt.
We warned of the need for fiscal consolidation, and we see a great deal of understanding, but not enough action
IMF calls on the United States to reduce its debt
According to Georgieva, the fund separately urged Washington to pay attention to the state of public finances.
From conversations with Secretary Bessent, it became clear that this is not sustainable, and that the United States must gradually reduce its deficit and debt
The IMF chief also warned that inflation remains "stubborn," while high interest rates are increasing the cost of servicing public debt.
The IMF plans to publish updated forecasts for the global economy and inflation next month.