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The International Monetary Fund (IMF) has projected that by 2029, the global debt-to-GDP ratio will reach its highest level since 1948.
In its “Fiscal Monitor Report” released on the 15th local time, ahead of the IMF-World Bank Annual Meetings in Washington, D.C., the IMF estimated that by 2029, the global general government debt-to-GDP ratio will exceed 100%.
The general government debt ratio includes not only national debt as commonly used domestically but also the debt of non-profit public institutions, offering a broader perspective on government debt.
The IMF explained that this projection reflects a higher and steeper increase path than what was anticipated before the pandemic.
Additionally, the IMF pointed out that significantly rising interest rates in the global financial markets are already placing a burden on budgets through increasing debt repayment costs, while the continuous rise in financial asset values is amplifying financial stability risks.
The IMF added that further increasing demands on fiscal spending arise from defense, natural disasters, disruptive technologies, demographics, and development.