IMF's Alarming Report on Global Public Debt

The International Monetary Fund (IMF) unveiled a concerning forecast on Wednesday, predicting 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.

Long-Term Debt Projections

According to the IMF, this upward trajectory is expected to persist, with public debt approaching 100% of GDP by the decade's end, surpassing the peaks observed during the pandemic. These projections incorporate the latest tariff announcements from February 1 to April 4.

Uncertainty and Potential Risks

The IMF also highlighted the uncertainty surrounding trade policies, suggesting that debt levels could escalate even further. Meanwhile, the United States anticipates a reduction in its budget deficit to 6.5% of GDP this year, down from 7.3% in 2024, with a further decrease to 5.5% expected by 2026.