The "time bomb" of public debt threatens many countries around the world.

Public debt is a common and important issue for many countries around the world. Public debt is formed when the government borrows money to finance economic development programs and other spending plans.

The level of public debt can affect a country's economic health, causing problems such as hindering economic growth, raising interest rates, and reducing the ability to spend on other important programs.

Currently, many countries, both developed and developing, are facing high public debt, negatively affecting economic growth prospects.

International Monetary Fund (IMF) Managing Director Kristalina Georgieva announced plans in April 2025 to develop a new strategy for countries considering debt restructuring, calling on highly indebted countries to take proactive steps to restore sustainability.

In the United States, Treasury Secretary Scott Bessent recently called on congressional leaders to raise the debt ceiling by mid-July 2025. Otherwise, the federal government could reach its current debt limit by August 2025.

In mid-May 2025, Moody's downgraded the US sovereign credit rating by one notch, becoming the last major rating agency to do so, citing concerns about the growing national debt, which has now reached $36 trillion.

IMF First Deputy Managing Director Gita Gopinath warned that the US fiscal deficit is too high and Washington needs to address its growing public debt burden soon.

Speaking in an interview with the Financial Times published on May 21, she stressed that the US fiscal situation is posing many risks to long-term growth.

Despite some positive signs, such as the Trump administration lifting tariffs on China and signing an economic deal with the UK, the US still faces a "very high" level of trade policy uncertainty, Ms. Gopinath said.

Meanwhile, the Central Bank of Italy announced in mid-May 2025 that the country's public debt in March 2025 was at its highest level ever, reaching 3,034 billion euros (3,380 billion USD), an increase of 9.5 billion euros compared to the previous month.

In the context of the weakening trend of the USD, Italy's total public debt also recorded a record high in USD terms.

By the end of 2024, Italy's public debt ratio will be equivalent to 135.3% of Gross Domestic Product (GDP) - among the highest in the world .

With the current rate of increase in public debt exceeding the economic growth rate, experts predict that this rate will continue to increase in 2025.

According to the Bank of Italy, the main reason for the increase in public debt in March was the sharp increase in borrowing demand from the public sector, which reached 23.7 billion euros (26.5 billion USD) in just one month.

Public debt is also a headache for UK officials. According to data released by the Office for National Statistics (ONS) on May 22, the UK's public debt in April 2025, the first month of the 2025-2026 financial year, was £20.2 billion ($27.11 billion), up from a deficit of £19.1 billion in April 2024.

The ONS said public debt rose in April 2025, exceeding the £17.9bn forecast by financial experts, due to increased government spending on public services and benefits.

Updated economic figures also show that in the 2024-2025 financial year, UK government borrowing will be £148.3 billion, down from the ONS' previous estimate of £151.9 billion, but still £11 billion higher than the £137.3 billion forecast by the Office for Budget Responsibility (OBR), the UK's financial watchdog.

In the financial year ending March 2025, the UK will have a budget deficit of £70.3 billion, up £8.4 billion from the financial year ending March 2024 and higher than the OBR's forecast of £60.7 billion.

Meanwhile, Australia's Lowy Institute on May 27 shared notable comments on the public debt situation of some developing countries, as debt payments to China are expected to reach a record high in 2025.

Analyzing data from the World Bank (WB), the Lowy Institute estimates that in 2025, 75 low-income countries will need to repay a total of about $22 billion in loans from China.

Researcher Riley Duke also said that China's position as an international lender has changed significantly.

China has now moved from being a net capital supplier – lending more than it takes in – to a net capital receiver, with repayments now exceeding new loans.

According to the Lowy Institute's recommendation, pressure from Chinese loans, along with increased debt repayments to international private creditors, could affect the stability of many developing economies in the coming time./.

According to VNA

Source: https://baothanhhoa.vn/qua-bom-no-cham-no-cong-de-doa-nhieu-quoc-gia-tren-tren-the-gioi-250148.htm