In its latest World Economic Outlook report, the International Monetary Fund warned that even as inflation and economic prospects stabilize, governments will need to make efforts in the medium term to ensure healthy public finances.
According to IMF calculations, global public debt will continue to increase in the coming years, reaching 99% of GDP in 2029. This increase is mainly due to China and the United States, exceeding the historical peaks observed during previous years. Difficulties of the epidemic crisis.
Contrary to the recommendations of international organizations, which highlight the need for adjustments to ensure sustainable financing, countries such as Sudan, Japan and Singapore are among the countries that will accumulate the largest total public debts on the planet at the beginning of 2030.
The list of the most indebted countries also includes Italy (144.9%), Greece (138.8%), Belgium (115.6%), France (115.2%), and Spain (104.2%), with the latter maintaining a downward trend, contrary to the general trend. .
The level of Portuguese public debt will continue the downward trend that began in 2017 over the next six years, and the International Monetary Fund expects the ratio of public debt to GDP to decline from 99.1% recorded last year to 76.9% in 2029. The Public Finance Comptroller’s forecasts indicate, Presented Wednesday in Washington, D.C., the debt will fall by 22.2 percentage points, which is close to where it was in 2008.
Thus, Portugal is permanently distancing itself from the “club” of highly indebted people in the eurozone.
IMF data reveal that in 2021, there was a decline in deficit and public debt levels across the world, accounting for just 91% of GDP that year. However, a year later, the trend has changed, mainly due to increases in interest rates and government spending to combat the effects of the pandemic and the inflationary crisis.
The IMF proposes a set of well-designed fiscal policies to promote long-term growth and help finance the strategic public investments needed to facilitate the green and digital transition.
Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
