IMF warns global public debt could exceed 100% of GDP by 2030

The International Monetary Fund (IMF) has issued warnings regarding the trajectory of global public debt, which is projected to exceed 100% of global GDP before 2030. IMF Managing Director Kristalina Georgieva noted that the era of cheap money is ending, making it increasingly difficult for governments to finance deficits through economic growth alone.

Georgieva highlighted that highly indebted advanced economies, including the United States, Germany, and Japan, are primary drivers of this debt accumulation. Rising bond yields are increasing the costs of refinancing existing debt and securing new loans.

In addition to fiscal pressures, the global economy faces simultaneous challenges from high energy costs and inflationary pressures. While investments in artificial intelligence could potentially add 0.5 percentage points to annual global growth, the IMF warns that energy shocks and geopolitical conflicts continue to act as drags on economic stability.