International Desk: This year, the total public debt of various countries in the world will cross the milestone of 100 trillion dollars. Which will stand at 93 percent of the global total GDP. Then the International Monetary Fund (IMF) said that global public debt will increase faster than forecast.
Meanwhile, to achieve financial stability, the organization believes that debt reduction of 3.8 percent of GDP is necessary. Recently, the IMF said in their latest Fiscal Monitor report that by the end of 2024, the public debt of various countries will reach 93 percent of the global gross domestic product or GDP.
And it is likely to reach 100 percent by 2030. During the coronavirus pandemic, this debt reached a record 99 percent of GDP. The IMF has expressed concern that future debt levels may be much higher than currently forecast.
In particular, this fear is increasing due to the increase in spending in large economies like the United States. According to the report, fiscal policy uncertainty is increasing in the country, along with increasing political disagreement over tax collection. At the same time, increasing expenditure on environmental protection, maintenance of aging population, security related challenges and other development expenditure is creating pressure to increase government expenditure.
Emphasizing financial stability, the IMF says the current situation of strong growth and low unemployment, is an ideal time for sure. However, efforts to average 1 percent of GDP between 2023 and 2029 are not sufficient to reduce or stabilize debt, the agency believes. The IMF also believes that a debt contraction of 3.8 percent is necessary to achieve this goal.
