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The IMF projects global public debt to reach $100 trillion in 2023, indicating a significant fiscal challenge for many countries.
Key Highlights of the Report
Global public debt is expected to hit 93% of global GDP this year and approach 100% by 2030, a 10 percentage point increase since 2019.
The IMF warns that the actual debt burden may be worse than current estimates due to rising spending pressures and potential unidentified debts.
Recommendations
Countries should prioritize getting their fiscal policies in order to manage rising debt levels.
Debt-at-Risk Approach: The IMF introduces a new method to assess risks to debt projections, highlighting potential increases in global public debt to 115% of GDP by 2026 under worst-case scenarios.
A fiscal adjustment of 3.0 to 4.5% of GDP is necessary to regain control over global public debt, nearly double previous adjustments.
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