IMF global debt warning

IMF officials Vitor Gaspar, Paulo Medas, and Roberto Perrelli wrote a joint blog post on global debt.

According to the IMF’s global debt database, the ratio of total public and private debt to global gross domestic product (GDP) decreased by 10 percentage points to 247 percent last year, it was recorded.

REACHED THE PEAK

In the article, it was recalled that the ratio of total public and private debt to global GDP peaked at 257% in 2020.

Stating that global debt continues to rise, albeit at a much slower rate, it was noted that last year it reached a record level of $235 trillion.

In the article, it was stated that if the economic outlook continues to deteriorate and borrowing costs rise further, it will become increasingly difficult to manage high debt levels.

In the IMF officials’ blog post, it was stated that high inflation continues to help debt ratios fall in 2022, but governments should use fiscal policies to reduce inflationary pressures. (AA)