By 2029 global debt will be higher than it's been since the end of World War II, says IMF

"The planet has faced various unforeseen crises in recent years. There has been the Covid pandemic and its lasting effects; the Russian invasion of Ukraine, which has set off an energy crisis as well as inflation; not to mention the most recent blow of President Donald Trump's trade war. To cope with such disruptions, countries have opened up their wallets to alleviate the impact on households and businesses."

"According to the International Monetary Fund (IMF), worldwide public debt will rise above 100% of the planet's GDP in 2029, representing its highest level since 1948, after World War II. This reflects a higher and steeper path than projected before the pandemic, states the IMF's Fiscal Monitor, the annual report that analyzes fiscal imbalances, and whose latest edition was published on Wednesday as part of the organization's annual assembly."

"The institution, which was born from the 1944 Bretton Woods meetings, explains that the situation does not look the same in every part of the world. There are a handful of wealthy countries that have accumulated a heavy load of debt exceeding 100% of their GDP, including the United States, Canada, China, France, Italy, Japan and the United Kingdom. These countries typically have deep and liquid sovereign bond markets and often broad policy choices, resulting in their fiscal risk considered moderate, allows the IMF report."

Recent global shocks — the Covid pandemic, the Russian invasion of Ukraine and consequent energy and inflation pressures, and intensified trade frictions — prompted large fiscal interventions to support households and businesses. Those interventions have substantially increased public indebtedness. The IMF projects worldwide public debt will surpass 100% of global GDP by 2029, the highest level since 1948, following a steeper path than pre-pandemic forecasts. Debt burdens vary: wealthy countries often exceed 100% debt but retain deep markets and broader policy options, while many developing and low-income countries face greater fiscal constraints despite lower nominal debt levels.

Read at english.elpais.com