IMF: hefty debt leaves countries without room to face future crises
Inflationary pressures and the rise in bond yields have driven up the cost of debt financing. The Fund warns governments that it is urgent to undertake fiscal adjustments, because the longer they wait, "the more painful it will be".
The International Monetary Fund (IMF) has warned governments that urgent fiscal adjustments are needed to address rising debt levels and financing costs. The global debt-to-GDP ratio is projected to reach 100% by 2029-2030, with the IMF citing increased borrowing costs, inflationary pressures, and a decline in fiscal space as major concerns.
The Fund is urging governments to take concrete measures to reduce their deficits and debt, including containing spending, strengthening debt management, and redesigning tax systems. The IMF's director of Fiscal Affairs, Rodrigo Valdés, emphasized that delaying these adjustments will only make them more painful in the long run.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
