Global debt to surpass $100T in 2024: IMF

The International Monetary Fund (IMF) forecasts global public debt to surpass $100 trillion in 2024. The fund anticipates that debt could rise faster than projected due to policymakers in major economies like the United States and China increasing spending.

In its latest fiscal monitor, the IMF reported that global debt will reach 93% of global GDP by the end of this year and is projected to approach 100% by 2030, exceeding the peak observed during the pandemic at 99%.

The fund pointed out that that debt levels are expected to rise in countries including the United States, Brazil, France, Italy, South Africa, and the United Kingdom. The fund warned that delaying action to address this issue could be risky.

Historical data suggests that rising debt levels can trigger adverse market reactions and erode policymakers' ability to manage public finances during economic downturns.

Uncertainty surrounding global fiscal policies increased, the fund noted, adding that pressures from the energy transition, aging populations, security risks, and existing development challenges intensified.

The fund emphasized that risks of rising debt are getting higher because politicians are unwilling to cut spending.

In a severe downside scenario, the IMF forecasts that global debt could reach as high as 115% of GDP within just three years.