Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated at an economic forum in New York on September 20 that the latest IMF projections show global public debt will exceed 100% of global GDP by 2029, two full years earlier than previously expected, driven by the rapid increase in government borrowing, particularly in the United States. She noted that countries are not doing enough to consolidate their fiscal positions.
Georgieva also revealed that she had specific discussions on U.S. fiscal issues with U.S. Treasury Secretary Scott Bessent, and both agreed that the current U.S. debt structure is unsustainable and that the U.S. needs to gradually reduce its budget deficit and debt size. She also warned that the conflict in the Middle East could impact the global economy and pointed out that global inflationary pressures persist, suggesting that major central banks like the Federal Reserve and the European Central Bank may need to further raise interest rates, which would increase government financing costs and exacerbate debt burdens.
IMF warns: Global public debt to exceed 100% of GDP by 2029, two years earlier than projected, with US debt path "unsustainable."
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