WASHINGTON: The International Monetary Fund (IMF) has cautioned that global government debt is projected to rise sharply, reaching 100% of the world’s total gross domestic product (GDP) by 2029 — the highest level since the years following World War II.

According to the IMF’s latest Fiscal Monitor Report, public debt across major economies has been increasing faster than anticipated, driven largely by heavy spending during the COVID-19 pandemic and subsequent global crises. The report urged governments to focus on growth-driven investments such as infrastructure, education, and innovation to ensure long-term debt sustainability.

Global Debt Hits Post-War Levels

The IMF noted that a 100% global debt-to-GDP ratio would be comparable to levels recorded in 1948, when nations were rebuilding their economies after the war. Several G20 countries, including the United Kingdom, France, Japan, Canada, China, and the United States, are expected to exceed this threshold in the coming years.

Rising Spending Pressures and Limited Tax Increases

The Fund highlighted that many countries face mounting spending pressures from multiple fronts — including defence budgets, climate-related disasters, technological disruptions, aging populations, and developmental needs. However, political opposition to tax hikes remains a major challenge.

> “All these fiscal pressures are combining with strong political resistance to tax increases and limited public understanding of fiscal constraints,” the IMF stated.

Emerging Economies Face Higher Risk

Despite having relatively lower debt-to-GDP ratios, emerging and low-income economies are facing greater fiscal strain. The IMF warned that 55 countries are either already in debt distress or at high risk of it, even though many maintain debt ratios below 60% of GDP. Weak revenue systems, high borrowing costs, and limited access to international finance are key contributors.

IMF Urges Faster Debt Restructuring

Global campaigners and economists have called on the IMF to take stronger action in addressing unsustainable debt. They argue that the existing Common Framework for debt restructuring is too slow, complex, and difficult for many nations to qualify for.

UK Debt Projected to Exceed 105% of GDP

For the United Kingdom, the IMF forecasts public debt to peak at 105.9% of GDP in 2029, before slightly easing to 105.4% in 2030. The rise comes as the UK government adjusts its fiscal rules under Chancellor Rachel Reeves, who recently adopted a new method for calculating national debt.

During a press conference in Washington, IMF Deputy Director for Monetary and Capital Markets Athanasios Vamvakidis noted that the UK bond market has been showing higher volatility than other advanced economies, reflecting investor concerns.

> “Markets remain cautious about the UK’s fiscal outlook, and volatility has been more pronounced compared to other developed nations,” he said.

Global Debt Outlook: Key Takeaways

Global government debt to reach 100% of GDP by 2029, highest since 1948 Major economies including the UK, US, France, Japan, and China to surpass 100% debt ratio Emerging nations facing growing debt stress despite lower ratios IMF calls for growth-oriented policies and faster debt restructuring frameworks.