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 gross domestic product (GDP), marking a concerning trend for the global economy.

Long-Term Projections and Uncertainties

"The upward trajectory is likely to persist, with public debt approaching 100% of GDP by the decade's end, exceeding levels seen during the pandemic," the IMF noted. These projections account for tariff announcements made between February 1 and April 4, yet the agency warns of potential further increases due to uncertainties in trade policies.

US Budget Deficit Expectations

Amid these global concerns, the United States anticipates a reduction in its budget deficit to 6.5% of GDP this year, with a further decrease to 5.5% expected by 2026. This is a notable improvement from the 7.3% recorded in 2024, offering a glimmer of hope in an otherwise daunting fiscal landscape.