All articles tagged with #global debt
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.
The Institute of International Finance's CEO, Tim Adams, has raised concerns about the record levels of global debt, emphasizing the urgent need for policymakers to address the "huge fiscal problem." With global debt reaching $307.4 trillion in the third quarter of 2023 and expected to rise further, Adams highlighted the risks posed by high debt levels, particularly in the context of aging populations and upcoming elections that could lead to increased populism. He stressed the importance of swiftly and intelligently addressing fiscal imbalances to avoid a potential crisis.
Concerns are mounting over the possibility of a financial market crisis in major developed economies due to record debts, high interest rates, and escalating spending needs. Developed economies, including the United States, Italy, and Britain, are particularly worrisome, with investors demanding higher compensation for holding long-term bonds. Governments must deliver credible fiscal plans, raise taxes, and stimulate growth to manage their finances effectively. The risk of a policy misstep triggering a market rout is heightened by geopolitical tensions and the withdrawal of central bank support. Efficient spending, reforms, and growth plans are crucial to address the mounting debt and avoid a crisis in the next decade.
India's G20 summit negotiator, Amitabh Kant, has called for the world to move on from the Ukraine war and focus on addressing global poverty. Kant's comments come after two back-to-back G20 ministerial meetings in India were overshadowed by the war. India, which holds the bloc's presidency this year, has sought to highlight the economic impact of the conflict as well as issues such as climate change and poorer countries' debt. Kant said it is "premature" to even talk about whether U.S. President Joe Biden and Russian President Vladimir Putin would attend a summit of leaders of the bloc in New Delhi on Sept. 9-10.