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Global debt will be greater than the GDP of the entire planet by 2030, according to IMF

Global debt will be greater than the GDP of the entire planet by 2030, according to IMF

Global debt would exceed 100% of world GDP by 2030, according to a new forecast from the International Monetary Fund (IMF) presented this week at its annual meeting with the World Bank (WB).

The multilateral organization specified that the increase is due to the slowdown in the growth of economies around the world, the increase in interest rates and the constantly growing fiscal deficits, with the United States and China at the helm.

In this way, the accumulated debt of USA It would climb to 123.3% of its GDP this year and is then expected to continue rising to 137% in 2028.

China, the second largest economy, is also a major contributor to the global red ink. Its debt is expected to reach 83% of GDP in 2023 and continue to grow until it exceeds 100% in 2027.

How will it go Latin America and the Caribbean? According to international media such as France24, the IMF points to an unexpected jump from 3.4% to 4.6% of GDP this year in the regional budget deficit.

On the public debt side, it is expected to remain relatively stable at 68.5% of GDP with Argentina and Brazil rising compared to last year, and with Mexico, which is already in a healthier position than its regional neighbors, lowering it.

The greater the deficit, which is generated when expenses are higher than income, there will be more debt for each country, which in turn means that each nation dedicates a greater proportion of its income to covering these obligations, sacrificing social investment. or having to raise your taxes.

Source: Larepublica

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