
"Government debt across the world is on course to hit 100% of global gross domestic product (GDP) by 2029, according to analysis by the International Monetary Fund, the highest level since the aftermath of the second world war. In its Fiscal Monitor report, the IMF said aggregate government debt had risen more rapidly than expected before the Covid pandemic, when policymakers stepped into protect citizens and bail out hard-hit businesses. UK faces highest inflation in G7 this year and next, IMF warns"
"The report named the UK as among the G20 countries whose ratio would peak above 100% of GDP on the IMF's definition in the coming years alongside France, Japan, Canada, China and the US. The IMF said there were still upward pressures on spending in many countries alongside a reluctance to impose tax rises on sceptical voters. Looming expenditures on defence, natural disasters, disruptive technologies, demographics, and development add to public spending demands."
IMF analysis projects global government debt will reach 100% of global GDP by 2029, the highest level since 1948. Aggregate government debt rose faster than expected before the Covid pandemic, and pandemic-era interventions further increased liabilities. Governments are urged to reallocate spending toward growth-friendly areas such as infrastructure and education to bolster economies and improve debt sustainability. Several G20 countries including the UK, France, Japan, Canada, China and the US are forecast to exceed 100% debt-to-GDP. Persistent upward spending pressures, resistance to tax increases, defence and disaster costs, disruptive technologies, demographic change and development needs intensify fiscal challenges. Around 55 countries face debt distress or high risk despite relatively low debt ratios, and emerging economies may struggle even with lower debt-to-GDP levels.
Read at www.theguardian.com
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