Overview

• The IMF’s Fiscal Monitor projects an adverse, yet plausible, path where global public debt reaches about 123% of GDP by the end of the decade.
• The Global Financial Stability Report cautions that abrupt yield spikes linked to debt concerns could strain banks and pressure open‑ended funds, risking disorderly market corrections.
• High‑debt advanced economies identified include the United States, Canada, China, France, Italy, Japan and the UK, with U.S. debt projected to approach roughly 140% of GDP by decade‑end.
• The Fund calls for fiscal consolidation and buffer‑building, urging a reallocation toward education, infrastructure and R&D, with about 1% of GDP in overheads potentially lifting output over five to ten years.
• Vulnerabilities are uneven, with around 55 emerging and low‑income countries already in or near debt distress and facing tighter financing conditions despite lower debt ratios.