IMF Warns Global Debt May Surpass Pandemic Levels by 2030

The International Monetary Fund (IMF) warns that global public debt is projected to surpass pandemic-era levels, approaching nearly 100% of global GDP by 2030, due in large part to mounting fiscal pressures and new U.S. tariffs. The IMF's latest forecasts also indicate a slowdown in global economic growth, with projections for 2025 reduced to 2.8%, citing heightened uncertainty and trade disruptions caused by tariff escalations, particularly those introduced by the United States. This uncertainty is seen as a major drag on global activity, with IMF officials urging policymakers to restore stability and predictability to the trading system to support growth. The Fund highlights that major economies, including the U.S. and China, are expected to maintain substantial fiscal deficits, and that persistent inflation may require central banks to delay or even tighten monetary policy. Additionally, the IMF cautions that continued uncertainty over trade policy could further increase the risk of a global recession. Emerging markets and developing economies may face higher financing costs and increased debt vulnerabilities as a result of these developments.