The International Monetary Fund's (IMF) latest Fiscal Monitor report shows that total global public debt will surpass $100 trillion this year for the first time in history.
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| The IMF believes that global public debt could rise faster than expected. (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.
The figure is also 10 percentage points higher than in 2019, before the pandemic caused government spending to skyrocket.
The IMF said global public debt could rise faster than expected as political trends favor more public spending and slow economic growth raise borrowing needs and costs.
The agency's report on rising debt levels comes as the US presidential election approaches, with both candidates pledging new tax cuts and spending policies that could add trillions of dollars to the federal budget deficit.
According to the main estimate of the US Committee for a Responsible Federal Budget (CRFB), the tax cut plan of Republican presidential candidate Donald Trump will increase the country's new debt by about 7.5 trillion USD over 10 years, more than twice the expected increase of 3.5 trillion USD from the plan of Vice President Kamala Harris, the candidate of the Democratic Party.
Public debt could continue to rise significantly due to weak economic growth, tightening financial conditions, and growing uncertainty about fiscal and monetary policy in systemically important economies such as the US and China.
The IMF report also mentioned a “severe 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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