WASHINGTON, Oct 15 — The global public debt will exceed 100 per cent of the gross domestic product (GDP) by 2029, reaching a historic high level in almost 80 years, said the International Monetary Fund (IMF), reported Sputnik/RIA Novosti.
“Global public debt is projected to rise above 100 per cent of GDP by 2029. In such a scenario, public debt would be at its highest level since 1948,” it said in its new Fiscal Monitor report on Wednesday.
The IMF added that there is a five per cent risk that the debt would reach 123 per cent in the next four years.
This outlook has worsened since the Covid-19 pandemic, as the fund also warned of the wide distribution of risks, which could lead to even faster debt accumulation.
“Beyond the present, fiscal risks loom large. Public debt dynamics have drastically changed in recent years; it is not only the size of debt but also the cost,” it said.
Public debt is high and rising, and increasing defence spending, ageing populations, and higher interest rates put additional pressure on public finances.
The IMF noted that the United States’ (US) government gross debt would reach 140 per cent of the GDP in 2029 and would add another almost three per cent the following year.
In 2029, the US’ debt will be 140.1 per cent of the GDP, and this level will increase to 143.4 per cent in 2030.
It is expected that in 2025, the US debt will be 125 per cent and will continue to grow in the coming years. In mid-October, the US public debt exceeded US$37 trillion (RM156.5 trillion), according to news reports.
The report also revealed that Russia’s government gross debt will exceed 32 per cent of the GDP in the next five years. In 2030, its debt will be 32.8 per cent of the GDP.
The IMF expects Russia’s debt to be 23.1 per cent of the GDP in 2025, almost three per cent higher than a year earlier, according to the report. This level would gradually increase in the upcoming years.
