“Starting from too high deficits and debts, the persistence of spending above tax revenues will push debt to ever higher heights threatening sustainability and financial stability,” the IMF said.
The International Monetary Fund (IMF) said that global public debt is on track to exceed 100% of GDP by the end of this decade, its highest level since 1948, in the aftermath of World War II.
Rising debt-servicing costs are adding pressure to government’s budgets, as well as increasing defense spending and aging populations, the Washington-based fund said in its latest Fiscal Monitor, published on Wednesday.
