The global public debt it is expected that it will continue to grow and will reach 100 trillion dollars by the end of the year, i.e. 93% of world GDPthe International Monetary Fund (IMF) announced today expressing its concern on the occasion of the publication of its Fiscal monitor report.

In terms of percentages there is no increase, as the public debt had already reached 93% in 2023, but it has increased in value and above all the trend does not seem to reverse, reports the Fund expressing its regret, which predicts that the ratio will reach 100% by the end of the decade.

In comparison, the private debt of households and non-financial private enterprises represented at the end of 2023 the 146% of world GDPaccording to IMF data.

“There are even reasons to think that the situation is even worse than expected,” underlined Ira Dubla-Norris, deputy director of the IMF’s fiscal affairs department, on the occasion of a press conference via the Internet.

“Experience reminds us that debt projections tend to be overly optimistic, either because governments are overly optimistic about their growth projections or because fiscal reforms are never fully implemented,” he said.

Although states have already announced fiscal adjustments, it is not necessary that these will allow the stabilization of public debt, much less its reduction, even if fully implemented.

This is due to the fact that some of the big savingsled by the US and China, see their debt continue to rise and there is no sign that this trend will reverse.

To be real reduction of public debt, would be an adjustment of 3.8% of GDP is necessary every year until the end of the decade, compared to the 1% considered until now.

But a significant reduction in public spending could have a significant impact on countries’ development, with an increase in inequality and the debt ratio, the IMF also points out.