IMF Warns of Global Public Debt Exceeding $100 Trillion by 2024
The International Monetary Fund (IMF) predicts that global public debt will hit $100 trillion by 2024, with the United States and China contributing to this growth through increased borrowing. This worrying trend is expected to continue until 2050 unless governments take action to implement fiscal reforms and reduce budget deficits.
IMF Managing Director Kristalina Georgieva has highlighted the long-term risks associated with such high levels of debt. She emphasized that the combination of low economic growth and high debt poses a significant threat to the global economy. Georgieva urged governments to prioritize reducing debt and building reserves to better prepare for future crises, which may arise sooner than anticipated.
The IMF has also warned of a potential “spillover” effect from the debt in major economies like the US and China. This could lead to higher borrowing costs for other countries, particularly impacting emerging markets and nations already struggling with substantial debt burdens.
It is crucial for governments around the world to address the mounting public debt issue and make necessary reforms to safeguard the stability of the global economy. Failure to do so could have serious repercussions for financial markets and the overall economic outlook.
