IMF warns that global debt will soon exceed 100% of GDP

IMF Managing Director Kristalina Georgieva warns governments that they can no longer postpone measures to restore fiscal space, as global public debt approaches 100% of GDP and financing costs rise. The message was delivered ahead of the annual meetings of the IMF and World Bank, attended by finance ministers and central bank governors from the 191 member states.

According to the IMF, global public debt is close to its highest level since World War II and is expected to exceed the equivalent of 100% of GDP. Levels are high in advanced economies, while emerging markets and low-income countries are vulnerable because of low budget revenues and limited access to financing.

The situation is complicated by bond yields, which have reached record levels in the United States, Germany, and Japan. In the euro area, pressure is mounting on heavily indebted countries, such as France and Italy.

The IMF is calling on governments to present credible medium-term fiscal consolidation plans and warns that a potential acceleration of the economy, including thanks to artificial intelligence, will not solve the debt problem on its own. The measures will be difficult, but they must protect economic growth and vulnerable groups.

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