The International Monetary Fund says world governments will borrow much more money this year as trade fights started by America slow economic growth. Because of these tensions, money markets will see more ups and downs.
The IMF predicts that public debt will jump 2.8 percentage points this year. This increase is more than double what experts thought would happen in 2024. Global government debt will rise above 95 percent of what all countries produce together. The report from the Washington group came out on Wednesday.
"This upward trend will likely continue, with public debt nearing 100 percent of GDP before 2030, going higher than pandemic levels," the IMF stated. Leaders around the world face tough choices between cutting back spending and using money to help weak economies grow.
Debt might grow even faster if trade problems keep going or if nations spend extra cash on their militaries. Countries with developing economies could face higher interest rates when they need to borrow money because of problems in the American government bond markets.
"Tighter financial conditions in the United States may spread to emerging markets, making loans cost more," IMF economists wrote. "This affects what people pay for raw materials, pushing prices down but making them change more often."
The IMF predicts that public debt will jump 2.8 percentage points this year. This increase is more than double what experts thought would happen in 2024. Global government debt will rise above 95 percent of what all countries produce together. The report from the Washington group came out on Wednesday.
"This upward trend will likely continue, with public debt nearing 100 percent of GDP before 2030, going higher than pandemic levels," the IMF stated. Leaders around the world face tough choices between cutting back spending and using money to help weak economies grow.
Debt might grow even faster if trade problems keep going or if nations spend extra cash on their militaries. Countries with developing economies could face higher interest rates when they need to borrow money because of problems in the American government bond markets.
"Tighter financial conditions in the United States may spread to emerging markets, making loans cost more," IMF economists wrote. "This affects what people pay for raw materials, pushing prices down but making them change more often."
