The latest Financial Monitoring Report from the International Monetary Fund (IMF) shows that total global public debt will surpass $100 trillion for the first time in history this year.
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| The IMF believes that global public debt could rise faster than anticipated. (Source: Getty Images) |
According to the report, global public debt will reach the equivalent of 93% of global Gross Domestic Product (GDP) by the end of 2024 and nearly 100% of GDP by 2030, surpassing the peak of 99% of GDP during the Covid-19 period.
This figure is also 10 percentage points higher than in 2019, before the pandemic caused government spending to skyrocket.
The IMF suggests that global public debt could rise faster than anticipated due to political trends favoring more public spending and slower economic growth leading to increased borrowing demand and costs.
The agency's report on rising debt levels was released as the US presidential election approaches, in which both candidates have pledged to implement tax cuts and new spending policies that could add trillions of dollars to the federal budget deficit.
According to the main estimate of the U.S. Federal Budget Committee (CRFB), Republican presidential candidate Donald Trump's tax cut plan would add approximately $7.5 trillion to the country's debt over 10 years, more than double the projected $3.5 trillion increase in public debt from the plan of Democratic Vice President Kamala Harris.
Public debt could continue to rise significantly due to weak economic growth, tight fiscal conditions, and increasing uncertainty about fiscal and monetary policy in systemically important economies such as the US and China.
The IMF report also mentions a "severely adverse scenario" related to these factors, suggesting that global public debt could rise to the equivalent of 115% of GDP in just three years, 20 percentage points higher than current forecasts.
Source: https://baoquocte.vn/truoc-bau-cu-tong-thong-my-2024-imf-cong-bo-du-lieu-soc-ve-tong-no-cong-toan-cau-290160.html
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