The International Monetary Fund recently dropped a serious hint: current tariff moves might push global debt levels to dangerous territory. In its latest Fiscal Monitor, the IMF warns that if economic output and fiscal revenues dip more sharply than expected due to rising tariffs and weakened growth prospects, public debt could breach critical thresholds.
According to the report, global public debt is projected to jump by 2.8 percentage points this year, pushing levels above 95% of GDP. In a "severely adverse scenario," forecasts even suggest that debt could surge to 117% of GDP by 2027—the highest since World War II! ⚠️
Recent tariff announcements, notably from the United States, coupled with countermeasures by other nations, have created ripple effects in financial markets. Rising yields in major economies and widening spreads in emerging markets are adding extra pressure, complicating fiscal landscapes around the world.
With geo-economic uncertainties mounting and defense spending on the rise, many countries face the challenge of balancing budgets in a rapidly shifting environment. The IMF urges countries to get their fiscal houses in order through prudent policies that rebuild public confidence and stabilize economies.
In today’s fast-paced world, staying informed is key—kind of like curating the perfect playlist to keep the vibes right! 🎶
Reference(s):
cgtn.com
