Barron’s (April 23)
“The global debt situation is raising alarms for the International Monetary Fund, which on Wednesday said ‘off-the-charts’ trade uncertainty was exacerbating a global debt load that it estimates crossed the $100 trillion level in 2024.” Current IMF projections call for “levels to rise further, with debt to global gross domestic product hitting 100% by the end of the decade,” but worldwide public debt “could soar to around 117% of GDP by 2027” in an extreme “adverse scenario,” though noting, “even that extreme scenario may be underestimating tail risk because trade and geoeconomic uncertainty has escalated, financial conditions have tightened, financial market volatility is visible and spending pressures have intensified.”
Tags: $100 trillion, 2024, Adverse scenario, Alarms, Exacerbating, GDP, Geoeconomic Financial conditions, Global debt, IMF, Market volatility, Off-the-charts, Spending pressures, Tail risk, Trade uncertainty, Underestimating
