Particle.news
Download on the App Store
5 ARTICLES
·
2w ago

IMF Warns U.S. Tariffs and Policy Uncertainty Drive Global Debt Toward Record Levels

Global public debt is projected to rise to 95.1% of GDP in 2025 and approach 100% by 2030, with governments facing sharper trade-offs in fiscal policy.

A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., U.S., November 24, 2024. REUTERS/Benoit Tessier/File Photo
The IMF and World Bank are holding their Spring Meetings in Washington this week
The International Monetary Fund said risks to the global fiscal outlook had intensified
Image

Overview

  • The IMF's April 2025 Fiscal Monitor highlights intensified fiscal risks from U.S. tariff policies, retaliatory measures, and heightened economic uncertainty over the past six months.
  • Global public debt, which peaked at 98.9% of GDP in 2020 during the COVID-19 crisis, is now projected to rise from 95.1% in 2025 to nearly 100% by 2030.
  • Rising bond yields, increased defense spending in Europe, and reduced foreign aid are compounding pressures on government budgets worldwide.
  • The IMF forecasts slight improvement in U.S. budget deficits, with tariffs boosting revenues, but warns that extended tax cuts could add $4 trillion to debt over a decade.
  • Governments are urged to pursue gradual debt reduction strategies while maintaining fiscal buffers and addressing social and defense spending needs.