WASHINGTON (Sputnik) – The global public debt will exceed 100% of GDP by 2029 and reach a historic high level in almost 80 years, the International Monetary Fund (IMF) said on Wednesday.
“Global public debt is projected to rise above 100 percent 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% risk that the debt would reach 123% 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 defense spending, aging populations, and higher interest rates put additional pressure on public finances, it added.
