Tariffs Trigger Global Debt Surge: IMF Warns of Economic Strain

The International Monetary Fund predicts global public debt will exceed pre-pandemic levels, driven by U.S. tariffs and slower economic growth. The IMF warns of increased fiscal deficits and challenges as countries grapple with rising debt, defense spending, and social support amid economic uncertainty.

The International Monetary Fund (IMF) has projected that global public debt will surpass pandemic-era levels, reaching nearly 100% of GDP by 2030, largely due to economic pressures from new U.S. tariffs.

Slower growth and trade challenges are contributing to this rising debt, as governments struggle with the balancing act of increased defense spending, social support needs, and potential inflation.

According to the IMF, fiscal deficits are forecast to remain substantial, with U.S. and Chinese deficits expected to rise, emphasizing the need for countries to prioritize debt reduction and build fiscal resilience to manage future economic shocks.

(With inputs from agencies.)