IMF's Shocking Warning: Global Debt Will Break Record in 2029

The International Monetary Fund (IMF) draws attention to the dangerous trend of global public debt in its published Fiscal Monitor Report. The report includes a forecast that by 2029, the general public debt may exceed 100% of GDP. This situation has the potential to create significant economic havoc, particularly in developing countries.

The IMF's warning is considered a development that directly threatens countries' fiscal sustainability and economic growth targets. The title of the report is also striking: "Smarter Spending: How Efficient and Well-Allocated Public Expenditures Can Boost Economic Growth?" Under this title, recommendations are provided on how to manage public expenditures more effectively.

At a global level, debt management has now become one of the top priorities for countries. The increase in debt also means rising debt service costs. This situation may significantly shake countries' budgets and lead to various challenges across a wide range, from social services to infrastructure projects.

The IMF examines the relationship between public statistics and debt levels, offering various recommendations about the importance of debt management. These recommendations encompass elements of fiscal discipline such as developing better spending strategies and preventing unnecessary expenditures. In this context, it is emphasized that countries need to reassess their public spending and accurately determine their priorities.

Especially in developing countries, the increase in budget deficits and the inability to ensure fiscal stability threaten not only the domestic economic environment but also investor confidence from abroad. In light of the IMF's report, it is crucial for countries to review their economic policies and restructure their debt management.