US and China Are Sending Global Debt to Record, IMF Warns
- Biggest contribution to debt ratio will come from China, US
- Fund highlights the need for nations to rebuild fiscal buffers
IMF Fiscal Affairs Department Director Vitor Gaspar
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The US, China and other major economies need to do more to address debt levels that are set to rise to near-record highs in five years, limiting nations’ ability to respond to future crises, the International Monetary Fund warned.
The IMF on Wednesday forecast the world’s ratio of debt to gross domestic product will climb to 99.6% by 2028, almost matching the level seen in 2020 when governments took on the largest increase in collective debt since World War II to buoy their economies in the face of the output loss from Covid-19 lockdowns.