Japan’s Agricultural, Forestry and Fishery Exports Hit Record High in 2025 Despite Tariffs 
Indian Rupee Strengthens Sharply After U.S.-India Trade Deal Announcement 
Dollar Holds Firm as Strong U.S. Data, Fed Expectations and Global Central Bank Moves Shape Markets 
Gold and Asian Stocks Rebound as Market Volatility Eases and Global Sentiment Improves 
Starmer’s China Visit Highlights Western Balancing Act Amid U.S.-China Rivalry 
UK Employers Plan Moderate Pay Rises as Inflation Pressures Ease but Persist 
Oil Prices Steady as Markets Weigh U.S.-Iran Talks, Dollar Strength Caps Gains 
Taiwan Urges Stronger Trade Ties With Fellow Democracies, Rejects Economic Dependence on China 
Gold Prices Stabilize in Asian Trade After Sharp Weekly Losses Amid Fed Uncertainty 
RBA Raises Interest Rates by 25 Basis Points as Inflation Pressures Persist 
U.S. Stock Futures Rise as Investors Eye Big Tech Earnings and AI Momentum 
Asian Currencies Strengthen as Indian Rupee and Australian Dollar Rally 
EU Recovery Fund Faces Bottlenecks Despite Driving Digital and Green Projects 
China and Uruguay Strengthen Strategic Partnership Amid Shifting Global Order 
Asian Markets Slide as Silver Volatility, Earnings Season, and Central Bank Meetings Rattle Investors 
Philippines Manufacturing PMI Hits Nine-Month High Despite Weak Confidence Outlook 
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.
