IMF Warns of Global Debt Surge to Over 100% of GDP by 2029

The IMF forecasts that global public debt will surpass 100% of GDP by 2029, the highest level since 1948. Vitor Gaspar, IMF's Director of Fiscal Affairs, highlighted the impact of the global financial crisis and the COVID-19 pandemic on debt levels.

While current low interest rates have supported debt sustainability, Gaspar warns of shifting economic landscapes and urges governments to prioritize fiscal policy reforms. The IMF's Fiscal Monitor recommends reallocating expenditures towards infrastructure, education, healthcare, and research to enhance long-term economic growth and efficiency.