Global public debt is set to surpass $100 trillion for the first time, with key drivers identified as political uncertainty, aversion to tax hikes, and spending pressures.
Mushrooming public debts raise the probability of debt distress or broader financial crisis, while interest payments reduce spending flexibility and hinder responses to economic downturns.
In a severely adverse scenario, global debt could balloon to 115% of GDP by 2026, driven by weaker growth and greater policy uncertainty.
Countries are increasingly vulnerable to factors that affect their borrowing costs, particularly spillovers from heightened policy uncertainty in influential economies like the United States.
Collection
[
|
...
]