Global public debt is increasing. It exceeded $100 trillion in 2024—about 93% of global gross domestic product (GDP)—and is expected to rise further, potentially reaching 100% by 2030.
Looking ahead, rising trade and geopolitical uncertainty, tighter financial conditions, and spending pressures could exacerbate fiscal pressures and lead to lower growth
In an Analytical Corner session, economist Faizaan Kisat explains how the new “debt-at-risk” framework assesses all potential future paths of public debt. Using data from 47 major economies, the model predicts global debt could exceed 115% of GDP by 2027 in adverse scenarios. These debt levels have not been seen since World War II. Debt risks vary by country group – emerging markets face rising risks from political and economic uncertainty, while advanced economies are more affected by financial conditions.
The framework serves as an early-warning tool, emphasizing the urgent need to reduce global debt vulnerabilities. But the good news is that policymakers can mitigate risks through gradual fiscal consolidation and growth-friendly policies. Enditem
Source: Ghana Eye Report
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