The global public debt is expected to surpass $100 trillion for the first time this year and could continue to rise due to increased government spending and a slowing global economy, according to a new report from the International Monetary Fund (IMF).
By the end of 2024, global public debt is projected to reach approximately 93% of global GDP, with the potential to approach 100% by 2030. This marks a 10 percentage-point increase from 2019, before the COVID-19 pandemic led to a surge in government spending aimed at supporting economic recovery.
The IMF also noted rising fiscal policy uncertainty, with political resistance to tax increases becoming more entrenched. “Spending pressures are growing, driven by the need to address green transitions, an ageing population, security concerns, and ongoing development challenges,” the report stated.
This comes as the United States prepares for presidential elections next month. Both candidates, Donald Trump and Kamala Harris, have proposed new tax cuts and welfare policies, which could further boost spending in the world’s largest economy.
