About one third of the International Monetary Fund’s 191 member countries now have debt growing at rates faster than before the pandemic.
WASHINGTON: Economic pressures from steep new US tariffs will push global public debt above pandemic-era levels to nearly 100% of global GDP by the end of the decade as slower growth and trade strain government budgets, the International Monetary Fund said today. The IMF’s latest fiscal monitor projected that global public debt will grow 2.8 percentage points to 95.1% of global GDP in 2025.Global public debt peaked in 2020 at 98.
Governments’ annual fiscal deficits are forecast to average 5.1% of GDP in 2025, compared to 5.0% in 2024, 3.7% in 2022 and 9.5% in 2020, according to the report.The budget outlook is based on the IMF’s “reference forecast” for 2.8% global GDP growth this year in its latest World Economic Outlook, which includes tariff developments through April 4.
“About one third of the IMF’s 191 member countries now have debt growing at rates faster than before the pandemic, but they make up about 80% of global GDP,” he added. This was due to a combination of increased tariff collections based on announced measures as well as continued US output growth. The Trump administration wants to extend them, which budget experts said would add some US$4 trillion to US debt over a decade without offsets.
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