Global Public Debt on the Rise

The International Monetary Fund (IMF) has released a report indicating a significant increase in global public debt. By 2025, the debt is expected to grow by 2.8 percentage points, more than doubling the estimates for 2024. This surge would elevate debt levels to 95% of the global gross domestic product (GDP).

Long-Term Projections and Concerns

"The upward trajectory is likely to persist, with public debt approaching 100% of GDP by the end of the decade, exceeding pandemic levels," the IMF noted. These projections account for tariff announcements made between February 1 and April 4. However, the IMF warns that the uncertainty surrounding trade policies could lead to even higher debt levels.

US Budget Deficit Expectations

On a slightly positive note, the United States' budget deficit is projected to decrease to 6.5% of GDP this year, and further to 5.5% by 2026, down from 7.3% in 2024.