RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
The International Monetary Fund (IMF) has projected that the world’s total public debt will exceed $100 trillion for the first time in 2024, driven by increased government spending and slower economic growth. This alarming trend highlights the need for urgent fiscal policy changes as debt levels soar.
Key Findings from the IMF Fiscal Monitor
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—a significant increase from 89% in 2019. The report warns that current debt projections may underestimate future outcomes due to political pressures favoring higher spending, particularly in the U.S., the world's largest economy.
Political Landscape and Campaign Promises
As the U.S. presidential election approaches, candidates from both parties are proposing new tax cuts and spending initiatives. Republican candidate Donald Trump's plans could add approximately $7.5 trillion to the national debt over ten years, while Kamala Harris, the Democratic nominee, may add about $3.5 trillion. These promises could exacerbate already rising debt levels.
The Need for Fiscal Consolidation
The IMF emphasizes the importance of fiscal consolidation during this period of solid growth and low unemployment. Current efforts, averaging 1% of GDP over the next six years, are inadequate to stabilize debt levels. The report suggests that a cumulative tightening of 3.8% is essential to achieve fiscal sustainability.
Conclusion
With projections indicating a potential rise to 115% of global GDP in a severely adverse scenario, countries like the U.S., China, and several others face significant fiscal challenges. To mitigate these risks, the IMF urges countries to implement credible fiscal plans to enhance resilience against future economic shocks.
