The International Monetary Fund (IMF) announced that the world’s total public debt is projected to exceed $100 trillion this year for the first time, driven by political sentiment favoring increased spending and a slow-growth environment that amplifies borrowing needs and costs. According to the IMF’s latest Fiscal Monitor report, global public debt is expected to reach 93% of global GDP by the end of 2024, approaching 100% by 2030—up 10 percentage points from pre-pandemic levels in 2019.
With upcoming U.S. presidential elections, both candidates have proposed tax breaks and spending that could add trillions to federal deficits. Notably, former President Donald Trump’s tax plans could add around $7.5 trillion in new debt over a decade, compared to Vice President Kamala Harris’s $3.5 trillion. The IMF warns that current fiscal efforts are insufficient to stabilize debts, suggesting a tightening of 3.8% is necessary.
Countries with rising debt, including the U.S., Brazil, and South Africa, face potential economic consequences if adjustments are delayed. The IMF cautioned that high debt levels without credible fiscal plans could trigger negative market reactions, restricting nations’ abilities to manage future economic shocks.