IMF: Global Public Debt Could Reach 100% of GDP by 2029

IMF: global public debt has approached 100 per cent of GDP

Global public debt has approached 100 per cent of global GDP and continues to rise. The International Monetary Fund warns that the debt burden has reached levels not seen since the Second World War, whilst high interest rates are making debt servicing increasingly expensive.

Add Logos Press as a preferred source on Google

This was stated by Julie Kozak, a spokesperson for the International Monetary Fund. According to her, pressure on public finances is mounting, and the problem affects both developed and developing economies.

At the same time, the global economy has so far proved more resilient than experts had feared. Despite the energy shock linked to the ongoing conflict in the Middle East, the IMF still expects global GDP to grow by around 3 per cent in 2026.

Countries have managed to partially mitigate the impact of the energy crisis by drawing on oil and gas reserves, seeking alternative suppliers and reducing consumption. However, energy prices remain high, and the IMF warns that the energy shock itself is not yet over.

Debt will continue to rise

The state of public finances is a particular cause for concern for the IMF, notes the Latvian portal bb.lv.

According to the Fund’s latest estimate, global public debt stood at almost 94 per cent of GDP in 2025 and, if current trends continue, will reach 100 per cent of GDP by 2029. The figure may rise even higher in the future.

At the same time, the cost of servicing the debt is rising. Interest expenditure by governments has risen from around 2 per cent to nearly 3 per cent of global GDP in just four years.

The debt burden is particularly high in a number of the largest economies. For example, the IMF forecasts that US public debt could rise to around 142 per cent of GDP by 2031, whilst China’s could approach 127 per cent.

Developing countries are finding it harder

Another problem is the reduction in available financing for the poorest countries. Rising bond yields in the largest economies automatically make borrowing more expensive for developing countries as well.

According to the IMF, some countries, particularly in Africa, are already facing liquidity problems. The situation is exacerbated by cuts in international aid and external financing. As a result, an increasing proportion of budgets is being spent on interest payments rather than on infrastructure, healthcare and education.

The Fund is calling on governments to draw up clear medium-term plans to reduce deficits and stabilise debt. However, the IMF is not demanding immediate, drastic spending cuts: it is more important to demonstrate to the markets a convincing strategy for putting public finances in order.

How did this story make you feel?