The International Monetary Fund (IMF) has issued a stark warning about the rising tide of public debt in countries across the globe, with the United States standing out due to its persistent fiscal deficits and mounting spending pressures.
The IMF’s latest Fiscal Monitor report, released on Oct. 15, projects that global public debt will exceed $100 trillion in 2024, equal to about 93 percent of global gross domestic product (GDP), and could approach 100 percent of GDP by the end of the decade. The United States, in particular, faces significant risks if fiscal policies are not adjusted urgently.
The report emphasizes that countries, including the United States, need to address debt risks with carefully crafted fiscal strategies. It warns that debt levels could be worse than anticipated due to large spending pressures, sizeable unidentified debt, and overly optimistic debt projections….