The International Monetary Fund (IMF) warns that global public debt is set to rise above 100% of the world’s Gross Domestic Product by 2029, the highest since 1948. Vitor Gaspar, IMF’s Fiscal Affairs Director, says this growing debt risk demands urgent and consistent action from policymakers to keep debt in check and avoid financial turmoil.
He explained that unlike past years when low interest rates kept debt manageable, today’s rising rates and uncertain markets make the outlook far more worrisome. Gaspar calls for stronger fiscal policies focused on sustainable growth, better governance, and trust-building to support economies through future shocks.
The IMF suggests shifting public spending towards infrastructure, health, education, and research without increasing budgets to boost long-term growth efficiently.
Leave a comment