On the 15th, the International Monetary Fund released the latest Financial Monitoring Report. The report shows that, By 2029, global public debt is expected to exceed 100% of global GDP, and could even reach 123% in extreme circumstances.This is the highest level since 1948.
Vitor Gaspar, director of the Financial Affairs Department of the International Monetary Fund, said in an exclusive interview with CCTV reporters that countries must "act now" to enhance fiscal resilience by optimizing expenditure structures and improving efficiency.
Vitor Gaspar, Director of the Department of Financial Affairs of the International Monetary Fund:In an extreme but possible scenario, the scale of global public debt will reach 123% of global GDP in 2029, which is a very high level. Therefore, our policy recommendation is that countries must immediately give priority to fiscal policy, ensure debt sustainability and build fiscal buffers to prepare for severe shocks, including potential financial crises.
The IMF noted that the current debt situation in developed economies and low-income countries is clearly diverging, and that countries should sustainable growth by improving spending efficiency and optimizing structures, while also calling on countries to mitigate the overlapping effects of debt and fiscal pressure by strengthening trade cooperation.
Vitor Gaspar, Director of the Department of Financial Affairs of the International Monetary Fund:We encourage addressing trade frictions and disputes through consultation and cooperation.
CCTV reporter Xu Tao:The International Monetary Fund warned that rising global debt and shrinking fiscal space are creating cumulative pressures, and fiscal vulnerability is spreading to a wider scale. The International Monetary Fund emphasized that countries must prioritize fiscal policies, prepare for rainy days, and gain active space for the economy to cope with uncertainty and resist potential shocks by spending smarter and improving efficiency.