The International Monetary Fund (IMF) has projected that global public debt will exceed 100 percent of the world’s gross domestic product (GDP) by 2029, its highest level since 1948. The Fund warned that rising borrowing costs, persistent fiscal deficits, and slowing growth could threaten the stability of many economies if unchecked.
According to the IMF, the sharp increase is being fueled by post-pandemic spending, higher interest rates, and the need for governments to finance energy subsidies, social programs, and climate-related projects. Advanced economies, including the United States and several European nations, account for most of the debt, but emerging markets are also facing growing fiscal pressure.
The Fund advised governments to adopt credible fiscal reforms, broaden their tax base, and improve spending efficiency to stabilize debt levels. Economists caution that without coordinated global efforts, rising debt could undermine investor confidence, increase inflation risks, and slow global economic recovery. The IMF’s warning highlights an urgent call for fiscal discipline and sustainable growth strategies.
