IMF's Alarming Report on Global Public Debt

The International Monetary Fund (IMF) has issued a stark warning in its latest report, forecasting a significant rise in global public debt by 2.8 percentage points in 2025. This increase is more than double the estimates for 2024, potentially elevating debt levels to a staggering 95% of global GDP.

Future Projections and Concerns

According to the IMF, this upward trajectory is expected to persist, with public debt nearing 100% of GDP by the decade's end, exceeding levels seen during the pandemic. The projections incorporate tariff announcements made between February 1 and April 4, highlighting the impact of trade policies on global debt.

Uncertainty and Potential Risks

The IMF also cautioned about the uncertainty surrounding trade policies, suggesting that debt levels could escalate even further. 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% in 2026, down from 7.3% in 2024.