The $100 trillion, or 93% of global gross domestic product, will reach global public debt by the end of this year, driven by the US and China. That’s according to an analysis by the International Monetary Fund.
In its latest Fiscal Monitor – an overview of global public finance developments – the IMF, according to Bloomberg, expects debt to approach 100% of GDP by 2030 and warns that governments will have to make tough decisions to stabilize borrowing.
Debt is expected to rise in the US, Brazil, France, Italy, South Africa, and the United Kingdom, according to the IMF report, which calls on governments to take action.
“Waiting is risky: country experiences show that high debt can trigger adverse market reactions and limits room for fiscal maneuver in the face of adverse shocks,” it said.