Global Debt Crisis Looms: $100 Trillion Milestone

The International Monetary Fund warns that global public debt is on track to surpass $100 trillion for the first time, driven by high spending and slow economic growth. Political promises and fiscal policy uncertainties further increase this risk, necessitating urgent fiscal consolidation measures to stabilize economies.

The world is approaching a significant economic milestone as global public debt is set to exceed $100 trillion for the first time. This concerning trend, highlighted by the International Monetary Fund, reflects mounting fiscal challenges driven by high spending and slow growth.

The IMF's Fiscal Monitor report foresees global public debt reaching 93% of the global GDP by the end of 2024, potentially increasing to 100% by 2030. Political promises from leading economies, especially the United States, further exacerbate these projections.

Experts, including the IMF's deputy fiscal affairs director, warn that failure to address fiscal consolidation could lead to severe economic repercussions. Countries at risk must prioritize tax reforms and cut inefficient subsidies to avoid market shocks and future instability.

(With inputs from agencies.)