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Global Debt Crisis: IMF Warns of Looming Fiscal Storm

Global Debt Crisis: IMF Warns of Looming Fiscal Storm

Published 1 week, 3 days ago
Description

Global public debt is surging, set to hit 99% of world GDP by 2028, with a worst-case scenario of 121% within three years. Real interest rates are now six percentage points higher, making debt more costly. The IMF blames policy choices, not economic cycles, for this structural issue. The U.S. is a prime example, with $39 trillion in national debt and a deficit projected to hover around 7.5% of GDP. Bond markets are losing faith in endless borrowing, and AI is the only potential solution to ease the fiscal crush.

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