Global debt surpasses $100T, IMF warns
Global government debt has surpassed the $100 trillion mark, according to the International Monetary Fund, with projections indicating it will exceed 100% of the global gross domestic product (GDP) by 2029—ahead of previous forecasts by two centuries. This surge is driven by accelerated borrowing in the United States and China, where American debt exceeds $40 trillion, representing 126% of its GDP, while China's debts surpass $16 trillion, amounting to 80% of its economy. Japan ranks third with debts approaching $10 trillion, accounting for 230% of its GDP. Global debt has risen from around 80% prior to the COVID-19 pandemic in 2018 to over 100%, as economic slowdown and rising inflation have caused a rebound after a temporary decline. The increase in debt poses a significant challenge for governments, as rising interest rates and borrowing costs threaten to slow economic growth and increase debt servicing burdens.
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