All articles tagged with #debt sustainability
The IMF warns that global government debt is projected to reach 100% of GDP by 2029, the highest since 1948, with the UK’s debt peaking at around 106%. The report highlights rising spending pressures, political challenges in raising taxes, and concerns over debt management, especially in emerging economies, urging a shift towards growth-friendly investments to ensure sustainability.
Global bond markets are experiencing a selloff with rising yields in the US, Europe, and the UK, driven by concerns over government debt sustainability and economic fundamentals, prompting safe-haven assets like gold to hit record prices and raising questions about future fiscal and monetary policy responses.
Governments worldwide face rising bond yields due to concerns over fiscal sustainability, with market pressures potentially forcing them to implement austerity measures like spending cuts and tax hikes to avoid worse economic scenarios. Historical examples show that such measures can stabilize markets and lead to budget surpluses, but current debates, especially in the U.S., highlight the ongoing challenge of balancing growth and debt reduction.
Sri Lanka has secured a $3 billion loan from the International Monetary Fund (IMF) to restore macroeconomic stability and debt sustainability, and unlock the country's growth potential. The loan will be provided through the IMF's Extended Fund Facility (EFF), with an initial disbursement of $333 million. Sri Lanka has been facing its worst financial crisis in decades, with food, fuel, and medicine shortages causing unrest and protests. The loan will provide much-needed respite for the nation as it faces an uphill climb to revive its flailing economy.