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IMF Warns Global Public Debt Nearing 100% of GDP, Led by U.S. at Over 120%

The IMF's Fiscal Monitor highlights worsening debt and deficit projections for 2025, raising concerns over sustainability and market volatility.

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Overview

  • The IMF projects global public debt to reach 92.3% of GDP in 2025, with warnings it could approach 100% by the decade's end, totaling $85 trillion.
  • U.S. public debt has surpassed 120% of GDP, hitting $37 trillion in 2025, and is expected to exceed $40 trillion within two years, making it the largest global contributor.
  • Spain's deficit is forecast at 2.7% of GDP and public debt at 100.6% in 2025, reflecting a broader trend of fiscal strain in advanced economies.
  • Recent U.S. Treasury bond sell-offs, triggered by new tariffs, have increased market volatility and borrowing costs, raising concerns about the dollar's safe-haven status.
  • IMF officials emphasize the urgency of reducing global debt levels, while experts debate the sustainability of U.S. fiscal policies and their long-term implications.