Global Public Debt on the Rise

The International Monetary Fund (IMF) revealed in its latest report on Wednesday a startling projection: global public debt is expected to increase by 2.8 percentage points in 2025. This significant rise, more than double the estimates for 2024, would elevate debt levels to 95% of gross domestic product (GDP).

A Continuing Upward Trend

"This upward trend is likely to continue, with public debt nearing 100% of GDP by the end of the decade, surpassing pandemic levels," the United Nations financial agency warned. The projections have considered tariff announcements from February 1 to April 4, highlighting the precarious nature of current fiscal policies.

Uncertainty Looms Over Trade Policies

Amidst this financial forecast, the IMF cautioned that "debt levels could rise even further" due to the uncertainty surrounding trade policies. Meanwhile, the United States sees a silver lining with its budget deficit anticipated to decrease to 6.5% of GDP this year, and further to 5.5% in 2026, down from 7.3% in 2024.