IMF warns global debt to hit 100% of GDP by 2029, cites US Treasury risks

The International Monetary Fund’s latest Fiscal Monitor warns that global public debt is set to reach 100% of world GDP by 2029, a year earlier than previously projected. The report highlights mounting fiscal pressures, rising interest costs and a shift in the ownership and composition of US Treasury securities, which could trigger volatility in sovereign‑debt markets. The IMF notes that 33% of US debt will need to be rolled over within a year and that interest outlays have already doubled since 2022, with further increases expected. These dynamics raise borrowing costs worldwide and constrain fiscal space, potentially forcing higher taxes or spending cuts.

The Fund calls for forward‑looking fiscal policies, realistic consolidation targets and measures to preserve stability in Treasury markets, warning that the window for an orderly adjustment is narrowing.