Global public debt to exceed 100% of revenues by 2029

The International Monetary Fund (IMF) has reported that global public debt is projected to exceed 100 percent of global gross domestic product (GDP) by 2029.

This means that the economic value that countries produce in a year will be less than their debt.

The IMF said in the October issue of its fiscal monitoring report that if debt exceeds 100 percent of GDP, it would be the highest level since 1948.

These projections reflect a higher and steeper debt growth curve compared to that projected before the pandemic.

It is also expected that debt will increase faster than expected.

According to the report, countries' debt outlooks differ from each other.

For example, countries such as the US, Britain, Canada, China, France or Japan already have debts exceeding 100 percent of GDP or are approaching that level.

These countries are considered to be at a moderate risk because they are financially strong, have large bond markets and a wide range of policy options.

Many poor or developing countries, while relatively low in debt, are in much more difficult circumstances. That is, despite debt ratios below 60 percent, their access to finance is limited, interest rates are high, and their external debt burdens are heavy.

55 countries face the risk of a debt crisis despite low debt ratios.

Rising global interest rates are making it harder for governments to pay their debts. Meanwhile, countries are rapidly increasing their spending on items like defense, disaster relief, aging populations, and technology.

The IMF emphasized that countries should prioritize fiscal policies, that is, make spending efficient and maintain debt sustainability.